Rite Aid plans to close 63 stores – and is likely to close even more in the coming months – archyde





© Noam Galai/Getty Images
“We take the decision to close our business very seriously as we assess the impact it will have on our employees, our customers and our communities,” said Heyward Donigan, CEO of Rite Aid, on Tuesday. Noam Galai / Getty Images

  • Rite Aid announced Tuesday it was closing 63 stores to cut costs and improve profitability.
  • Employees from closed stores will be given the opportunity to work in different locations, Rite Aid said.
  • CVS announced last month that it would close 900 stores over the next three years.

Heyward Donigan, CEO of Rite Aid, announced Tuesday that the chain would close at least 63 stores to cut costs and improve profitability.

Donigan said she plans to move away from traditional in-store pharmacies to mail order and digital retail markets.

The pharmacy has not yet announced which locations will be closed. Employees in stores that are closing will have the option to relocate, Rite Aid said.

“We take the decision to close our business very seriously as we assess the impact it will have on our employees, our customers and our communities,” Donigan said in a call to investors.

Ritual help a quarterly revenue increase of 1.8% over the same period last year to 6.23 billion US dollars.

A competing pharmacy chain CVS, announced last month that 900 stores will close over the next three years to allow locations to shift their formats to primary care services and health and wellness centers.

Pharmacy direct marketing startups have pushed traditional companies like CVS and Rite Aid to innovate. Insider Lydia Ramsey reported last year. Tech companies like Amazon and Uber have also started delivering drugs.

With traditional pharmacies closed, Amazon, which entered the prescription delivery business in 2020, has has considered setting up physical locations.

Reference-www.nach-welt.com

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