Rite Aid closes more than 60 stores

After years of overexpansion, Rite Aid and other giant American pharmacy chains have struggled. They have closed hundreds of stores in recent years, despite the pandemic that has drawn people into pharmacies.

The exact locations of the closed stores were not revealed on Tuesday, but the company said the closures will help the company “reduce costs, drive improved profitability and ensure we have a healthy foundation to grow from.” Rite Aid has approximately 2,500 stores in 19 states, so the closures make up only 2% of the retail footprint.

Rite Aids’ closure of stores follows CVS Health’s recent announcement of the closure of 900 stores over the next three years. CVS explained in November that the closures were triggered by “consumer buying patterns” and that they will begin next spring.
Rite help (ADVICE), which is significantly smaller than its rivals CVS (CVS) or Walgreens (WBA), has been in the midst of remodeling some of the stores to focus on allocating more space for beauty and personal care items, as well as vitamins and supplements, and less for desktops and household appliances.
All the major US pharmacy chains have recently adjusted their retail footprint. For example, CVS acknowledged that it has too many stores that are too close to each other in some places.

In addition, fewer people go to Rite Aid and other drug stores to fill up their prescriptions and shop for household items these days. Some shoppers have replaced trips to stores like CVS by buying supplies online from Amazon, or from brick-and-mortar giants like Walmart and Target. The chains have built up their own strong e-commerce companies in recent years.

–CNN Business’ Nathaniel Meyersohn contributed to this report.

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