Rite Aid plans to close dozens of stores in the U.S. in an effort to save about $25 million per year. It follows a trend of other pharmacy chains that have closed or planned to shutter locations.
At least 63 stores Rite Aid will be closed in the next few months and the company indicated that moves were already underway last month. Workers are to be given a chance to transfer to another store, the company said in a press release.
"We have identified an initial 63 stores for closure that is expected to provide an annual EBITDA benefit of approximately $25 million.” CEO Heyward Donigan said.
The list of affected stores was not immediately announced. And that may not be the end of it. Rite Aid said it anticipates the number of closures to increase over the next several months.
CNN reports Rite Aid has 2,500 stores in 19 states. The closures make up about 2% of that total.
Rite Aid stock shot up more than 21% Tuesday, closing at 15.05.
Drug store rival CVS announced last month it will close about 900 stores over the next three years -- roughly 9% of its 10,000 retail locations -- as it reduces store count density in some places.
CNN notes that Rite Aid, which is smaller than CVS or Walgreens, has been working to remodel some of its stores to focus more space on beauty, personal care and health items.
This all comes as a rush of vaccine-seeking customers and staff shortages are squeezing drugstores around the U.S., leading to frazzled workers and temporary pharmacy closures.
Drugstores are normally busy this time of year with flu shots and other vaccines, but now pharmacists are doling out a growing number of COVID-19 shots and giving coronavirus tests.
Pharmacists say demand for COVID-19 vaccines started picking up over the summer as the delta variant spread rapidly. Booster shots and the expansion of vaccine eligibility to include children have since stoked it.
The Associated Press contributed to this report.