Rite Aid Expects More Closures Of ‘Unprofitable’ Stores

Ceremony Assist will shut a complete of 145 “unprofitable shops” in ongoing cost-cutting strikes designed to assist the pharmacy chain be extra aggressive.

Ceremony Assist, which has struggled in recent times to compete with bigger rivals Walgreens, CVS Well being and Walmart pharmacies, on Thursday stated it plans to “considerably cut back prices” by means of a “closure of a complete of 145 unprofitable shops.” The quantity contains the 63 shops the corporate already introduced in December it will shut.

The disclosure was made as a part of the corporate’s fiscal 2022 fourth quarter earnings report and financial 2023 outlook.

Ceremony Assist has been reporting mounting losses and Thursday was no completely different, disclosing a internet loss from persevering with operations of $389.1 million, or $7.18 loss per share for the interval ending Feb. 26, 2022. In the meantime, income from persevering with operations totaled $6.07 billion, which was up 2.5% in comparison with the year-ago interval.

“We exceeded our 2022 plan amid persevering with challenges of the COVID-19 pandemic,” Ceremony Assist president and chief government officer Heyward Donigan stated in a press release asserting earnings and the 2023 outlook. “As we look ahead to the 12 months forward, we’re prepared and energized to compete in a brand new post-pandemic regular.”

A month in the past, Donigan announced steps to “realign its administration workforce and streamline the corporate’s operations” by eliminating the Chief Working Officer (COO) place and consolidation of its pharmacy management.

Pharmacy reimbursement pressures and aggressive threats like on-line retailer Amazon’s push into pharmacy are forcing drugstore chains to take a look at new methods to reinvent their brick-and-mortar drugstores, promoting new merchandise and including extra healthcare companies. The shop closures, which started in November, have continued into this 12 months.

Ceremony Assist has greater than 2,400 retail pharmacy places throughout 17 states. By comparability, CVS and Walgreens every have greater than 9,000 shops.