Rite Aid Closing Stores as a Result of Restructuring Efforts

As the third-largest standalone pharmacy chain in the U.S., Ride Aid is closing more stores across the U.S. The company is adding 31 more locations to the 100 already planned to be closed. The latest closures span 12 states, with California, Pennsylvania, Ohio, Virginia, and Washington being particularly affected.

“With the support of our lenders, we look forward to strengthening our financial foundation, advancing our transformation initiatives and accelerating the execution of our turnaround strategy. In doing so, we will be even better able to deliver the healthcare products and services our customers and their families rely on now and in the future.”

Jeffrey Stein, CEO and CRO of Rite Aid, via The Hill

According to The Hill, here is the list of cities and states affected:

• CA: South Lake Tahoe, Truckee, Capitola, Oakhurst, Agoura, Livermore, Sacramento
• CT: New Haven
• MD: Delmar
• MI: Clawson, Bridgman
• PA: West Chester, Bellefonte, Pittsburgh, Philadelphia
• OH: Toledo, Canton, Chardon
• OR: Salem, St. Helens
• NV: Gardnerville
• NJ: Beachwood, Moorestown
• NY: Miller Place, Bronx
• VA: Norfolk, Williamsburg
• WA: Tacoma, Seattle, Lacey

After this additional wave of closures, Rite Aid will operate around 2,000 stores. This drastic move is part of Rite Aid’s restructuring efforts to navigate bankruptcy and ongoing legal troubles related to opioid prescriptions.

Despite securing $3.5 billion in finance and debt reduction agreements, Rite Aid’s situation remains challenging. The company plans to expedite store closures and sell parts of its business, including Elixir Solutions, its prescription benefit provider. Decreasing profits in the prescription-filling segment, the primary revenue source for drugstores, is pushing Rite Aid and its competitors like CVS and Walgreens to minimize their physical presence. CVS, the largest U.S. chain, plans to close 900 stores by 2024, while Walgreens announced 150 additional store closures earlier this year.

According to consulting firm McKinsey, the number of independent pharmacies has shrunk by nearly 50% from 1980 to 2022, illustrating the ongoing transformation of the pharmacy landscape.