On Tuesday, the drugstore chain Rite Aid announced that it will be closing at least 63 stores while it looks to examine how many locations it needs.
Rite Aid said that it identified the stores to close through an ongoing review, and it is planning to close more pharmacies within the coming months.
The company's goal is to reduce its costs while boosting profitability to have a "healthy foundation."
The 63 closures started last month and are expected to boost Rite Aid's earnings before interest, taxes, depreciation, and amortization by almost $25 million.
The drugstore chain posted mixed financial results for its fiscal third quarter on Tuesday, showing it earned more than expected on an adjusted basis. Still, its sales for the quarter came in lower than analysts projected.
Now, its projections for sales in the fiscal year have been cut, NBC News reported.
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Shares of the company surged by more than 16% in early trading, but when the market closed on Monday, the stock had dropped roughly 22% year to date.
This resulted in Rite Aid's market capitalization being roughly $692 million.
Rite Aid has more than 2,400 retail pharmacy locations opened nationwide, and it has not released a list of the stores getting closed.
Rite Aid isn't the only drugstore to give some locations the ax, as CVS Health announced its plan to close almost 900 stores by 2025.
CVS Health cited a change in shopper habits for its decision to reduce its number of locations.
Because buyers are shopping more online, both CVS and Walgreens are attempting to focus on digital growth, turning stores into a place for different healthcare services. This includes offering flu shots and giving diagnostic tests.
