Rite Aid Corp. reported mixed third-quarter results and said it has implemented a store closure program to reduce costs and drive profitability.
As the first phase of the program, which began this past November, the company is closing 63 stores. The closures are expected to provide an annual EBITDA benefit of $25M. Rite Aid said it will continue to review stores expects additional closures during the next several months. At the end of the third quarter, the company operated 2,400 locations nationwide.
Rite Aid President and CEO Heyward Donigan said the store closure program would also ensure that the company has a “healthy foundation to grow from, with the right stores in the right locations, for the communities we serve and for our business.”
In November, CVS Health said it plans to close approximately 900 stores during the next three years. Both CVS and Walgreens have been focusing on expanded healthcare services.
Rite Aid’s net loss totalled $36.1M, or $0.67 per share, for the quarter ended 27 November, compared to net income of $4.3M or $0.8 cents per share in the year-ago period. Adjusted earnings per share of $0.15 beat analyst estimates for a loss of $0.18.
