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Rite Aid to close at least 63 stores in the coming months


Picture taken October 16, 2019 in Los Angeles.

Mike Blake | Reuters

Drugstore chain Rite AidIt announced Tuesday that it will close at least 63 of its stores while it reviews how many it requires in the United States.

Company stated that the closures had been identified in an ongoing review. It anticipates finding additional shops to close over the course of the next few months.

Rite Aid claimed that it aims to cut costs and increase profits, as well as have a solid foundation. According to Rite Aid, the company expects that its earnings before interest taxes, depreciation, and amortization will increase by approximately $25 million with the closings of 63 stores.

Rite Aid’s financial results for Tuesday were mixed. While Rite Aid earned more in adjusted terms than anticipated, sales for the three-month period ending November 27 were below analysts’ expectations. It also reduced its forecast for revenue for the fiscal year.

Rite Aid shares fell by about 2% during premarket trades. It has fallen 22% over the past year, making it nearly $692million in market capitalization.

The list of Rite Aid’s planned closings of dozens of retail pharmacies was not available immediately. Rite Aid has more than 2400 locations of retail pharmacies in the United States.

A drugstore competitor was shut down last month CVS Health said it will close roughly 900 storesOver the next three-years, it will adjust to online shoppers.

Both CVS as well Walgreens have been focusing more effort on digital growth and turning stores into destinations that offer a range of health-care services, from flu shots to diagnostic tests.

Rite Aid has released the complete earnings press release here.