This Popular Chain is Closing Locations This Week
These are not the only stores the retailer will close this year.
Many of us rely on brick-and-mortar stores every day, whether we need to pick up ingredients for dinner, a gift we forgot we needed, or prescription medications. And when these local establishments close their doors, it can be both frustrating and inconvenient.
These days, it is easy enough to order anything you need online, but even Amazon Prime can't get necessities to your doorstep immediately. But unfortunately, another store you may frequent announced closures this week, which could affect your daily or weekly shopping trip. Read on to find out which popular chain is closing locations.
READ THIS NEXT: These Are All the Walmart Locations Closing Forever by the End of May.
Many well-known chains have recently closed stores.
In April, it was announced that two Barnes & Noble locations in the Boston area would be closing in May. A location in Saugus, Massachusetts will officially close on May 22, while the Braintree bookstore, located at the Prudential Center in Boston, will be closing on June 19. Both locations made announcements on Facebook, citing agreements with landlords as the primary reason for closing. Walmart is another retailer that has made headlines as of late for its plan to close five "underperforming" locations across the U.S., including two in Ohio, one in Kentucky, one in Washington, and one in Connecticut. And this week, a popular drug store will be shuttering locations.
Two of these pharmacy chain locations are closing.
RELATED: For more up-to-date information, sign up for our daily newsletter.
This week, two Rite Aid locations in the greater Sacramento area have shut their doors, the Sacramento Business Journal reported. On May 3, one of the drug stores in East Sacramento was closed, and today, May 5, a Rite Aid in Roseville closed up shop as well.
These closures are part of a larger initiative from Rite Aid—and another drugstore is following suit.
On April 14, 2022, Rite Aid announced it would be closing 145 "unprofitable stores" over the course of 2022. This updated an initial announcement from Dec. 2021, which first laid out plans to close 63 locations. The closures coincide with an effort to "significantly reduce costs" for the company, the April announcement stated.
The announcement further outlined company earnings for the previous fiscal year, ending Feb. 2022, which showed a net loss from continuing operations of $389.1 million in the last quarter alone. According to Heyward Donigan, Rite Aid president and CEO, the company is still experiencing challenges from the COVID-19 pandemic, but feels "ready and energized" when moving forward. Despite these fourth-quarter losses, the company did see progress over the course of the full fiscal year—with revenue rising from $525 million to $24.6 billion—which is largely attributed to a 12 percent increase in its pharmacy sales.
Rite Aid isn't alone in facing these issues: CVS is also closing stores, starting this spring. In Nov. 2021, the drugstore chain announced it would be shutting down 300 locations in 2022 and eliminating 900 stores by 2023. The retailer said it will be leaning into a digital strategy, but still plans to maintain a large physical presence, according to a company press release.
Four other Rite Aids were closed in the Sacramento area earlier this year.
The Rite Aid stores closed this week are not the first on the chopping block in Sacramento—four other locations have been closed so far this year, the Business Journal reported.
On Feb. 28, a Rite Aid in the downtown area of the city was closed, and on March 3, a location in midtown shuttered its doors. Following Rite Aid's updated announcement in April, an East Sacramento Rite Aid closed on March 28, followed by a store in Cameron Park on April 6.
However, Terri Hickey, director of public relations for Rite Aid, confirmed that other Sacramento Rite Aid stores are safe at the present moment.
"At this time, there are no further closings planned for this area," Hickey said in an email to the Business Journal. "These stores and the others are among the 145 stores that have been identified for closure between fall of 2021 and June of this year."
READ THIS NEXT: This Popular Grocery Chain Is Closing Stores, Starting Friday.