In recent years, the pharmacy industry in the United States has undergone a deep transformation. Economic changes and competition have forced several chains to rethink their business model. This situation is leading to the permanent closure of many iconic stores.
One of the most striking cases is Rite Aid, a chain that has just announced the closure of more locations. With this, it joins a process that has already led to the shutdown of about 1,070 stores since it began its bankruptcy. Rite Aid plans to end its physical presence across the country.
A prolonged crisis in the pharmaceutical sector
Since the Covid-19 pandemic, pharmacy chains have started to review their strategies. Many stores were closed to reduce costs and adapt to an increasingly competitive market. The decline in customer traffic has been attributed to several factors, such as the increase in shoplifting and the rising cost of labor and products due to inflation.
In addition, the growth of large retail chains like Walmart, Target, and Costco has considerably decreased traffic in traditional pharmacies. Online platforms like Amazon and Mark Cuban's CostPlus Drug Company have also contributed to this reduction. This scenario has forced the closure of less profitable locations to avoid greater losses.
Walgreens, another giant in the sector, is also evaluating its store network. Currently, it operates around 8,600 locations, of which 6,000 are profitable. The company studied closing up to 1,200 stores and plans to shut down 500 during fiscal year 2025, according to The Street.
Meanwhile, CVS, the chain with the most stores in the United States, announced in 2021 that it would close 900 of its nearly 9,900 locations. This plan was distributed in annual closures of 300 stores between 2022 and 2024, to which 271 more were added in 2025.
Rite Aid's final farewell
Rite Aid, however, is the one experiencing the greatest crisis. The company filed for bankruptcy protection under Chapter 11 for the first time in October 2023 and closed about 800 stores across the United States. However, the reorganization was not enough to save it, and on May 5, 2025, it filed a second bankruptcy process as New Rite Aid LLC.
Since then, Rite Aid has begun the total closure of its approximately 1,240 stores. On June 27, it filed its ninth request to close 123 additional stores in eight key states such as California, Pennsylvania, and New York. The total number of stores closed or scheduled to close reaches 1,070, distributed across 15 states, including places with large concentrations such as California with 277 closures and Pennsylvania with 263.
Rite Aid is expected to file one or two more notices to close its last locations and thus complete its exit from the physical market. The disappearance of this chain is a clear reflection of the difficulties traditional retailers face in the face of digital sales and large retail stores.