Rite Aid to Close 31 More Locations
Rite Aid is trying to right its financial ship, streamlining store operations while still building for the future. This week, as part of its ongoing bankruptcy case, the pharmacy chain shared that it plans to close 31 more stores in several states, including California, Connecticut, Maryland, Michigan, New Jersey, New York, Nevada, Ohio, Oregon, Pennsylvania, Virginia and Washington.
The latest round of closings comes after Rite Aid announced in October that it was declaring bankruptcy and shuttering 154 stores. A company spokesperson said that the recent decision to cease operations at underperforming stores was made to curb rent costs and strengthen Rite Aid’s overall financial performance.
As it works to restructure its debt, Rite Aid is contending with issues that led to some of its financial woes. Among other challenges, labor shortages, a drop in COVID-related vaccines and lawsuits stemming from painkiller prescriptions that caused headaches and bottom-line problems for the business.
Under the leadership of newly-appointed CEO Jeffrey Stein, Rite Aid is moving ahead with other plans for its future as investors and lenders provide more liquidity. This week, for example, the company announced that it has expanded a distribution center in Des Moines, Wash.
The 266,000-square-foot distribution center, which serves 250 locations in Washington, Oregon and Idaho, was upgraded to include a new automated goods-to-person solution that delivers items directly to associate workstations. The site also underwent renovations to office spaces, breakrooms, conference areas and locker rooms.
“The Des Moines facility is an integral part of our distribution network, and we’re now better equipped to execute with greater speed, agility and effectiveness that will position us for long-term success,” said Ron Gilbert, SVP, supply chain at Rite Aid. “The investment in the facility is ultimately an investment in our partners, our people, our customers and our community.”
Employing more than 6,300 pharmacists, Philadelphia-based Rite Aid operates more than 2,300 retail pharmacy locations. The company is No. 22 on The PG 100, Progressive Grocer’s 2023 list of the top food and consumables retailers in North America.
