The company is slashing about 400 corporate positions, and its CEO, CFO, and COO will exit as part of a leadership revamp.
Rite Aid shares fall amid questions about the pharmacy company's ability to compete with larger, well-capitalized rivals.
The drugstore chain's pharmacy same-store sales rose 5.1% in Q2, offsetting a 2.7% drop in retail comparable sales.
The grocery store operator and the drugstore chain are combining to create a retailer with 4,350 pharmacy counters and $83 billion in annual revenue.
Under a scaled-down deal, Walgreens would buy roughly half of Rite Aid’s stores.
The amended terms of the megamerger reflect the companies' efforts to obtain regulatory approval.
Prescription reimbursement rates "remain our largest challenge and we expect that to continue for the remainder of the fiscal year," the company says.
Drug reimbursement rate pressure leads to a $4.6 million net loss for the pharmacy chain.
But the drugstore chain's same store-sales fell short of estimates in part due to the introduction of low-margin generic drugs.
The combination of two of the three largest U.S. drug store chains continues a wave of industry consolidation spurred by the Affordable Care Act.
Rite Aid, Cynosure, WPX Energy, Diamond Hill Investment, Ethan Allen Interiors, Life Time Fitness, Bsquare, Silicon Image
The pharmacy chain isn't the first retailer to stop selling tobacco products, nor the first company to forgo a chunk of revenue.
