The retail sector in the United States continues to undergo significant changes after the pandemic. Major pharmacy chains are reviewing their store networks due to the economic crisis and fierce market competition. These adjustments are affecting thousands of stores across the country.
One of the companies most affected is CVS, which announced that it will close 271 stores this year to adjust its presence and reduce losses. However, it's not the only one: Rite Aid, another leading chain, has been announcing massive closures for months after filing for bankruptcy. In 2025, Rite Aid plans to close 118 more stores, bringing the total to nearly one thousand closures since 2023.
The economic impact and fierce competition
With the pandemic over, pharmacy chains are facing a complex economic situation. Inflation, rising wages, and higher product prices have increased operating costs. In addition, the rise in store thefts is a problem that worsens the financial situation of many companies.
Competition is getting tougher. Major retailers such as Walmart, Target, and Costco have gained ground in the pharmaceutical sector. On top of this, the rise of online providers like Amazon and CostPlus Drug Company, owned by Mark Cuban, offer medications at competitive prices and with great convenience.
CVS, with about 9,900 stores before the pandemic, began a closure plan in 2021 that has already eliminated about 900 stores between 2021 and 2024, according to The Street. This year, the company confirmed that it will close 271 additional locations to improve its profitability. CVS takes into account factors such as store density, community needs, and demographic changes to decide which branches to close.
Rite Aid: an almost total reduction
Rite Aid has undergone the greatest transformation. In October 2023, it filed for bankruptcy protection and since then has closed approximately 800 stores. In May 2025, it filed for bankruptcy again and announced the upcoming closure of 118 additional locations.
Rite Aid's closures are concentrated in 11 states, with California standing out with 40 stores, Pennsylvania with 30, and New York with 20. In total, the company plans to close around 1,240 stores, which means an almost total reduction of its physical network.
This process has a significant impact on access to pharmaceutical services for many communities. However, the company has tried to minimize the consequences by analyzing the local market and ensuring that there are other access points in the areas that have been most affected.
The massive closure of stores in these chains reflects the deep transformation of the retail pharmacy sector in the United States. Amid cost adjustments, intense competition, and new consumer habits, the pharmacy landscape is changing forever.