Rite Aid follows CVS in announcing store closings

Rite Aid is set to close dozens of stores across the country in an effort to save around $25 million yearly.

The company on Tuesday said it is closing 63 stores as part of a plan to "reduce costs, drive improved profitability and ensure that we have a healthy foundation to grow from," according to CNN.

Rite Aid's announcement follows CVS Pharmacy's move to shut down nearly 900 stores over the next three years.

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Last month, CVS CEO Karen S. Lynch said it is "evaluating changes in population, consumer buying patterns and future health needs to ensure it has the right kinds of stores in the right locations for consumers and for the business."

Rite Aid, which is smaller than competitors CVS and Walgreens, has started the process of remodeling stores and downsizing on products like household appliances and stationary in favor of more beauty and wellness items, CNN noted.

Earlier this year, Walgreens also announced that it would begin closing some of its San Francisco locations due to organized retail theft in the city.

Walgreens spokesperson Phil Caruso said at the time that theft in the city had increased to "five times our chain average."

According to CNN, many people have replaced their trips to drugstores like Rite Aid and CVS with online purchases from Amazon or trips to other retailers including Walmart and Target.