600 Rite Aid stores will close as part of the acquisition. After Rite Aid announced the sale of more than 1,900 stores to Walgreens last year, about two-thirds of local Rite Aid stores listed on the chain’s website appear to be slated for full store rebranding by 2020. Many stores in the greater Rochester area are included in the Walgreens haul,.
Rite Aids located near a Walgreens voted most likely to close Walgreens Boots Alliance — the fancy corporate moniker for Walgreens — will start closing some 600 stores next spring. “We have been able to complete a comprehensive review of the combined store portfolio to determine the scope for optimizing locations,” Global CFO George Rollo Fairweather told analysts and investors during an earnings call .
Drugstore chain Rite Aid said Tuesday it plans to shutter at least 63 stores as it reassesses how many locations it needs in the United States.
Rite Aid has approximately 2,500 stores across 19 states, so the closures amounts to just 2% of its retail footprint. Rite Aid’s website lists 10 stores in Massachusetts, and 60 in New Hampshire.
Why is Rite Aid closing so many stores?
The exact locations of the closing stores weren’t revealed Tuesday, but the company said the closures will help the company “reduce costs, drive improved profitability and ensure that we have a healthy foundation to grow from.” Rite Aid has approximately 2,500 stores across 19 states, so the closures amounts to just 2% of its retail footprint.
Why did Rite Aid close 63 stores?
Rite Aid said its goal is to reduce costs, boost profitability and have a “healthy foundation .” The company said the 63 closures, which began last month, are expected to boost its earnings before interest, taxes, depreciation and amortization by roughly $25 million.
Rite Aid (RAD), which is significantly smaller number than rivals CVS (CVS) or Walgreens (WBA), has been in the midst of remodeling some of its stores to focus on allocating more space for beauty and personal care items , as well as vitamins and supplements, and less for stationary and household appliances.
On Tuesday, Rite Aid posted mixed financial results for the fiscal third quarter. Although it earned more than expected on an adjusted basis, its sales for the three months ended Nov. 27 came in lower than analysts projected. The retailer also cut its outlook for sales for the fiscal year.
How many CVS stores will close in the next 3 years?
Last month, drugstore rival CVS Health said it will close roughly 900 stores over the next three years, as it adjusts to shoppers who are buying more online.