Rite Aid continues to shutter stores across the country as the company pursues a complete wind-down of its nationwide footprint after filing for bankruptcy for the second time in two years.
According to court filings, the pharmacy chain has already marked more than 1,000 locations for closure since it filed for Chapter 11 protection in early May.
Why It Matters
Rite Aid’s decision to shutter or sell-off all of its 1,200 stores – sparked by long-term financial difficulties and a challenging retail environment – comes as other pharmacy chains including CVS and Walgreens scale down their nationwide footprint.
The hundreds of stores that are still set to close within the year will limit many Americans’ access to health screenings and prescription medications, resulting in what experts are calling “pharmacy deserts” – less-connected communities being left without a sufficient number of nearby drugstores.
What To Know
In early May, Rite Aid announced plans to file for Chapter 11 proceedings, a move that will result in all of its stores either closing for good or being sold to new owners. CEO Matt Schroeder said the decision was prompted by “financial challenges,” exacerbated by “rapidly evolving retail and healthcare landscapes.”
Since then, the company has issued several rounds of closure notices. In its latest update on June 27, Rite Aid said it would shut another 123 locations across eight states, with California, Pennsylvania and New York the hardest hit. The announcement brought the total for June to nearly 600 and pushed the overall number of closures to 1,070.
The difficulties faced by Rite Aid are not unique, however. Other pharmacies including CVS and Walgreens are also reducing their nationwide store presence, which both companies have framed as a means of improving company-wide efficiencies.
This sector-wide trend threatens to decrease access to medication for many Americans, raising concerns about the growing phenomenon of so-called pharmacy deserts.
Research published in March, prior to the beginning of the Rite Aid closures, from U.S. healthcare company GoodRx found that over 48.4 million Americans – or one in seven – now lack easy access to a drugstore.
That marks an increase from 41.2 million in 2021, with the firm saying that 45 percent of U.S. counties could now be classified as pharmacy deserts, meaning large sections of the population are forced to travel significant distances to access essential medications.
What People Are Saying
Rite Aid CEO Matt Schroeder, upon announcing that the company had commenced Chapter 11 proceedings, said: “For more than 60 years, Rite Aid has been a proud provider of pharmacy services and products to our loyal customers. While we have continued to face financial challenges, intensified by the rapidly evolving retail and healthcare landscapes in which we operate, we are encouraged by meaningful interest from a number of potential national and regional strategic acquirors. As we move forward, our key priorities are ensuring uninterrupted pharmacy services for our customers and preserving jobs for as many associates as possible.”
Alex Beene, a financial literacy instructor for the University of Tennessee at Martin, previously told Newsweek: “For some major retailers, 2025 is becoming a year of consolidation. Retail locations that have struggled in recent years to remain profitable due to rising costs and less demand are being shuttered, as companies focus their efforts on more successful stores. The hope is these closures will ultimately produce more fiscal and operational efficiency, but it will come at the cost of customers who favored these locations having fewer options.”
What Happens Next?
Many of Rite Aid’s locations and prescription files have already been sold to competitors such as CVS. Last week, Rite Aid secured court approval to sell its Thrifty Ice Cream brand to a Monster Beverage-linked company for $19.2 million.
With pharmacy closures set to continue throughout 2025, the likelihood is growing that more Americans will find themselves struggling to access essential medication.
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