Rite Aid announced Tuesday it was closing 63 stores in order to boost profitability.

The company said it began the closures in November and anticipates additional closures in the future. It operates over 2,400 retail locations across 17 states.

CVS HEALTH TO CLOSE 900 STORES OVER THREE YEARS

"Today, we also announced the first phase of a store closure program 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," the company said in a press release.

The company reported a net loss of about $36 million for continuing operations and a 1.8% increase in revenue from the prior year in the third quarter. It anticipates closing the stores will increase its earnings before taxes by about $25 million a year.

Rite Aid is not the only pharmacy that has begun closing some of its retail locations. Last month, CVS Health announced plans to close over 900 locations over the next three years. Some analysts have argued that major U.S. pharmacy companies overexpanded during the past several years.

The company earns less revenue than its major competitors CVS and Walgreens but is still one of the largest pharmacies in the United States.

CLICK HERE TO READ MORE FROM THE WASHINGTON EXAMINER

In addition to closing some of its stores, the company said it has been working to improve its pharmacy benefit manager company, Exlixir. It announced a new rebate aggregation agreement with Prime Therapeutics.

Pharmacy benefit managers administer prescription drug programs by negotiating prices with pharmaceutical companies and maintaining a formulary, which details the list of drugs covered by insurance plans.