A list of New Jersey locations affected by the downsizing was not immediately available. There are 129 Rite Aid outlets in New Jersey of the more than 2,400 nationwide.
President and CEO Heyward Donigan said that the closures were designed “to reduce costs, drive improved profitability and ensure that we have a healthy foundation to grow from, with the right stores in the right locations, for the communities we serve and for our business.”
Closing the 63 stores is expected to provide an annual EBITDA benefit of approximately $25 million, he said.
Rite Aid announced its plans one month after competitor CVS announced plans to shutter 900 stores nationwide over the next three years.
In the third quarter, Rite Aidsaid revenues from continuing operations rose by 1.8% to $6.23 billion, compared to $6.12 billion in the same period last year. The company posted a net loss from continuing operations of $36.1 million or 67 cents per share, compared to net income of $4.3 million or 8 cents a share a year ago.
A spokesperson for Rite Aid did not immediately respond to a request for comment.[/vc_column_text][/vc_column][/vc_row]
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