Now playing
03:31
Buffett, Bezos & Dimon try to tackle health care
Getty Images
Now playing
02:18
This airplane-shaped bag is selling for more than some actual planes
Now playing
00:54
See Nike's new 'hands-free' shoe
One of many large boxes of returned products that fill the warehouse. The returned products in this box will eventually be sorted and categorized.
John General/CNN
One of many large boxes of returned products that fill the warehouse. The returned products in this box will eventually be sorted and categorized.
Now playing
05:08
Here's where your 'free' online returns actually end up
Shutterstock
Now playing
04:42
Ever receive a package you didn't order? It could be a scam
Orangetheory Fitness
Now playing
02:13
This gym is actually opening studios during the pandemic
Now playing
02:24
How holiday spirit is surging despite the Covid-19 pandemic
NEW YORK, NEW YORK - NOVEMBER 19: A view of the window display as Macy's Herald Square unveils Give, Love, Believe 2020 Holiday Windows on November 19, 2020 in New York City. (Photo by Eugene Gologursky/Getty Images for Macy's)
Eugene Gologursky/Getty Images North America/Getty Images for Macy's
NEW YORK, NEW YORK - NOVEMBER 19: A view of the window display as Macy's Herald Square unveils Give, Love, Believe 2020 Holiday Windows on November 19, 2020 in New York City. (Photo by Eugene Gologursky/Getty Images for Macy's)
Now playing
00:56
Macy's unveils holiday window display with gratitude theme
CNN/Target/Design by John General
Now playing
02:36
It's official: Black Friday is irrelevant
Now playing
02:23
Party City CEO: Consumers still want to celebrate together
NEW YORK, UNITED STATES - 2020/07/08: People wearing face masks shopping inside a retail store in Manhattan as the city enters phase 3 of reopening amid the coronavirus pandemic
As New York City enters phase 3 of reopening retail stores for indoor shopping, restaurants have been postponed for indoor dinning. The U.S. Department of Health recorded a total of 3,219,999 infections, 135,822 death and 1,426,428 recovered since the beginning of the outbreak. (Photo by Braulio Jatar/SOPA Images/LightRocket via Getty Images)
Braulio Jatar/SOPA Images/LightRocket/Getty Images
NEW YORK, UNITED STATES - 2020/07/08: People wearing face masks shopping inside a retail store in Manhattan as the city enters phase 3 of reopening amid the coronavirus pandemic As New York City enters phase 3 of reopening retail stores for indoor shopping, restaurants have been postponed for indoor dinning. The U.S. Department of Health recorded a total of 3,219,999 infections, 135,822 death and 1,426,428 recovered since the beginning of the outbreak. (Photo by Braulio Jatar/SOPA Images/LightRocket via Getty Images)
Now playing
01:38
US retail sales improved in September
thehouseofdrew.com
Now playing
02:01
Justin Bieber's footwear collaboration overwhelms site
Walmart
Now playing
01:01
See what's new inside Walmart stores
3119 E Third Street Dollar General in Dayton, OH on March 12, 2020.
Maddie McGarvey for CNN
3119 E Third Street Dollar General in Dayton, OH on March 12, 2020.
Now playing
06:07
Dollar General's business is booming. It's also vulnerable to crime, police say
Now playing
03:01
How private equity is gutting retail
Now playing
01:55
All retail bankruptcies are not the same. Here's what you need to know
(CNN Business) —  

Rite Aid is shaking up its leadership ranks and slashing 400 jobs as the company struggles to adapt to changes in the retail and pharmacy industries.

The drug store chain said Tuesday that it will replace three top executives, including CEO John Standley, who has led Rite Aid since 2010, as well as the company’s chief financial and operating officers. Standley will remain CEO until Rite Aid appoints a successor.

Rite Aid also said it would eliminate around 400 full-time corporate jobs, or 20% of the positions at the company’s headquarters. Rite Aide expects to save around $55 million a year from the restructuring plan.

Wall Street approved of the changes. Rite Aid’s (RAD) stock rose 4% during Wednesday trading — to around 70 cents a share. Rite Aid’s (RAD) stock fell below $1 in December.

“It is a positive in light of the intense competitive pressures the company faces,” Mickey Chadha, analyst at Moody’s, said of Rite Aid’s moves.

Rite Aid has struggled to keep up with bigger rivals such as CVS (CVS)and Walgreen (WBA)s. It has lost nearly $5 billion in sales since 2015, closed stores and its stock price has suffered.

More recently, Rite Aid’s competitors consolidated in order to lower costs, increase profits and stave off pressure from Amazon (AMZN). CVS agreed to buy health insurer Aetna in 2017 for $69 billion and gained the government’s approval last year. Express Scripts and Cigna also closed their $67 billion deal last year.

The restructuring and layoffs come months after Albertsons’ attempt to buy Rite Aid’s collapsed. Standley struck an agreement with Albertsons last February that would have created a new company with about $83 billion in annual sales and 4,900 locations across the United States. But the two companies called off the deal after pushback from shareholders who complained it undervalued Rite Aid.

“We have heard the views expressed by our stockholders,” Standley said in August.

Rite Aid was an acquisition target even before Albertsons.

Walgreens wanted to buy all of Rite Aid in 2015, but federal regulators nixed that agreement on antitrust grounds. In 2017, the two companies announced a scaled back version for nearly 2,000 of Rite Aid’s stores. That left Rite Aid with around 2,600 stores.