Rite Aid to Shutter 145 ‘Unprofitable’ Stores

Pharmacies are feeling the pressure from online competitors like Amazon Pharmacy.

April 19, 2022

Rite Aid Pharmacy

ALEXANDRIA, Va.—Rite Aid announced it will close 145 “unprofitable stores,” so it can “significantly reduce costs,” reports Forbes. Rite Aid says the closures will help it be more competitive. The 145 stores includes 63 stores the company announced in December that it would close.

Rite Aid made the announcement during its fiscal 2022 fourth-quarter earnings report and fiscal 2023 outlook, where it said the company saw a net loss from continuing operations of $389.1 million, or $7.18 loss per share for the period ended February 26, 2022. However, revenue from continuing operations totaled $6.07 billion, which was up 2.5% compared with the year-ago period.

“We exceeded our 2022 plan amid continuing challenges of the COVID-19 pandemic. As we look forward to the year ahead, we are ready and energized to compete in a new post-pandemic normal,” said Heyward Donigan, Rite Aid president and chief executive officer, in news release. “We demonstrated the important role that pharmacists play in the everyday health of our customers and are well positioned to grow in a trillion-dollar pharmacy market through our continued leadership as a full-service pharmacy company.”

Rite Aid has more than 2,400 retail pharmacy locations across 17 states, while CVS and Walgreens each have more than 9,000 stores.

Pharmacies are feeling the pressure from competitive threats, such as Amazon, which launched Amazon Pharmacy in 2020. Amazon customers can complete an entire pharmacy transaction on their desktop or through the Amazon App. Using a secure pharmacy profile, customers can add their insurance information, manage prescriptions and choose payment options before checking out. Prime members receive unlimited, free two-day delivery on orders from Amazon Pharmacy included with their membership.