Rite Aid Corporation, a retail pharmacy and health care services provider, announced in June 2020 that it would permanently close more than 200 stores across the country. The closures are part of a larger restructuring effort by the company to improve its financial performance in the coming years. Rite Aid’s decision to shut down stores is expected to result in more than 5500 job losses nationwide. This article provides an overview of what customers and employees need to know about the impending store closures.
Background on Rite Aid
Rite Aid is a chain of retail drugstores and pharmacies in the United States. The company was founded in 1962 and is based in Camp Hill, Pennsylvania. It is currently the third-largest drugstore chain in the nation, with more than 4,700 stores located in thirty-one states and the District of Columbia. Rite Aid is known for its convenient access to health care services and products, as well as its commitment to promoting healthier lifestyles.
Reasoning Behind Closures
Rite Aid cites the challenges posed by the COVID-19 pandemic and increased competition in the retail pharmacy industry as the primary reasons for the closures. Due to the prolonged lockdown and restrictions on in-store shopping, many Rite Aid stores have experienced decreased customer footfall and a corresponding decrease in revenue. Additionally, sector giants Walgreens and CVS Health have been rapidly expanding their retail pharmacy networks, leaving less room for smaller players like Rite Aid to compete.
Impact on Customers
RiteAid customers will be impacted by the store closures in several different ways.
Location – Customers who used to shop from Rite Aid stores that are closing will need to find other Rite Aid locations within their vicinity.
Products – Customers may need to switch to using products only available at other pharmacies, as particular products may not be available in other stores.
Price – The price of products may also differ significantly; customers should expect to see variations in product prices between Rite Aid and its competitors.
Impact on Employees
Rite Aid’s decision to close stores will also have a substantial impact on its workforce.
Approximately 5500 employees will be laid off as a result of the closures.
Rite Aid has set aside $20 million to conduct job retraining and other related programs for former employees.
The company is also offering two weeks of paid leave for those employees who are placed on earlier medical or disability leave after the closures.
The current list of stores slated to close includes 203 locations in 19 states:
Rite Aid’s store closings will have widespread implications for its customers and its workforce. Customers may need to find other Rite Aid locations for their medical and health-related purchases. Employees will also be impacted by the upcoming job losses, and Rite Aid has set aside resources to ensure their transition period is as smooth as possible. By taking these steps, the company hopes to position itself for an improved financial performance in the future.