Walgreens is expected to close down 200 stores across the country as part of its plan to cut costs.

After buying nearly half of Rite Aid stores in 2017, Walgreens expanded its American footprint to more than 9,500 locations.

The planned closures would affect less than 3% of Walgreens stores.

Walgreens said the closure will cause “minimal disruption to customers and patients” in a statement. The company also said they have plans to relocate employees affected to nearby stores.

Walgreens is facing several challenges including lower prices for generic drugs and a persistent decline in reimbursement rates for medications from state and federal government health care plans.

Meanwhile, competitor CVS reported stronger than expected earnings Wednesday and boosted its full-year outlook.