Rite Aid to close at least 63 stores in the coming months

Rite Aid to close at least 63 stores in the coming months

A Ceremony Assist retailer is proven in downtown Los Angeles, California, U.S., October 16, 2019.Image taken October 16, 2019.

Mike Blake | Reuters

Drugstore chain Ceremony Assist stated Tuesday it plans to shutter at the least 63 shops because it reassesses what number of places it wants.

The corporate stated the closures had been recognized as a part of an ongoing evaluation and it anticipates it should discover further outlets to close within the subsequent a number of months.

Ceremony Assist stated its aim is to scale back prices, enhance profitability and have a “wholesome basis.” The corporate stated the 63 closures, which started final month, are anticipated to spice up its earnings earlier than curiosity, taxes, depreciation and amortization by roughly $25 million.

On Tuesday, Ceremony Assist posted blended monetary outcomes for the fiscal third quarter. Though it earned greater than anticipated on an adjusted foundation, its gross sales for the three months ended Nov. 27 got here in decrease than analysts projected. The retailer additionally minimize its outlook for gross sales for the fiscal 12 months.

Ceremony Assist shares closed Tuesday up 21.4%. Shares are down about 4% 12 months so far, placing Ceremony Assist’s market capitalization at about $839 million.

A listing of the handfuls of shops Ceremony Assist plans to close wasn’t instantly out there. Ceremony Assist operates greater than 2,400 retail pharmacy places within the U.S.

Final month, drugstore rival CVS Well being stated it should shut roughly 900 shops over the following three years, because it adjusts to customers who’re shopping for extra on-line.

Each CVS and Walgreens have been focusing extra effort on digital development and turning shops into locations that provide a variety of health-care companies, from flu pictures to diagnostic exams.

Discover the complete earnings press launch from Ceremony Assist here.

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