Rite Aid is set to close eight more stores in the U.S., adding to the over 500 locations already shuttered in recent months.
According to company officials, the struggling pharmacy chain aims to streamline its operations and cut costs amid ongoing financial challenges.
Rite Aid Faces Bankruptcy and Store Closures
Court filings in October identified 154 underperforming stores that Rite Aid plans to close. A November bankruptcy court filing revealed the company was planning to shut down an additional 31 stores in a dozen states.
USA Today reported that Rite Aid filed for bankruptcy as it faced slumping sales and more than a thousand federal, state, and local lawsuits accusing it of fueling the opioid epidemic by illegally filling painkiller prescriptions.
The company also dealt with billions of dollars of debt and declining sales.
Rite Aid spokesperson Catherine Carter stated in November that the stores set for closure have been underperforming and will be closed to reduce rent expenses and improve overall financial performance.
The company plans to offer employees at closing stores the option to transfer to other locations.
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Rite Aid Announces Eight More Store Closures in Ohio and Michigan
In a bankruptcy filing on Monday, Rite Aid announced it will close eight more stores in Ohio and Michigan.
Rite Aid explained that these closures are primarily due to store performance and lease and rent issues.
The eight closures include:
4598 State St., Saginaw, Michigan
1104 E. Front St., Traverse City, Michigan
2583 Grove Ave., Lorain, Ohio
4914 Youngstown-Poland Road, Youngstown, Ohio
2980 Packard St., Ann Arbor, Michigan
431 W. Lincoln Highway, Ionia, Michigan
218 W. Main St., Flushing, Michigan
130 S. Detroit, Kenton, Ohio
In May, one of Staten Island's Rite Aid locations at 2271 Richmond Ave. in the Heartland Village Shopping Center, New Springville, officially closed, leaving the borough with only one remaining store.
Rite Aid's Rival Store Faces The Same Story
In related news, Franchise Herald reported that Rite Aid's rival pharmacy, Walgreens, has disclosed the locations of 26 stores that will close.
This announcement comes after company executives indicated that up to 25% more stores might shut down as part of broader retail cutbacks.
Walgreens, which operates about 8,600 stores across the United States, plans to close several locations to revitalize its struggling business.
In a call with analysts, Walgreens CEO Tim Wentworth discussed major changes for the company. He said that about 25% of Walgreens stores are not making money and are expected to close as part of a plan to revitalize the business.
According to Franchise Herald, Wentworth noted that the traditional pharmacy model is struggling in the current tough market, highlighting the need for a new strategy to remain competitive.
He added that the closures would mostly target unprofitable locations, stores close to other Walgreens, or those facing high theft rates.
While specific details are limited, Wentworth mentioned that these closures would occur over the next three years. He also indicated that more closures could happen if the company's financial situation does not improve.
In a recent interview with the Wall Street Journal, Wentworth assured that most employees from the closing stores would be offered jobs at other locations, emphasizing the company's commitment to its staff during these changes.
Related Article: Walgreens Unveils List of 26 Store Closures Amid Extensive Retail Reductions
