Rite Aid has announced the closure of more than 360 stores nationwide as part of its second Chapter 11 bankruptcy filing since October 2023. The closures, which began in May 2025, are part of the company’s ongoing efforts to restructure and address its severe financial challenges.
As Rite Aid faces its financial difficulties head-on, the company revealed that nearly a third of its 1,277 U.S. locations will close. Customers with prescriptions at these locations are being urged to pick them up by June 4, 2025, with a deadline of June 6 for redeeming any gift cards or coupons. These closures will impact both urban and suburban areas across the country, marking a significant step in Rite Aid’s attempt to consolidate its operations.
The decision to close stores and restructure comes as Rite Aid continues to grapple with a combination of factors, including shifting consumer behaviors, increasing competition from larger pharmacy chains, and persistent legal issues tied to the opioid crisis. The store closures are part of a broader plan to regain financial stability and make the business more competitive in an evolving market.
A Company in Decline
The decision to close over 360 stores signals a long-anticipated decline for Rite Aid, which has been a staple in American pharmacies since its founding in 1962. Despite once being one of the largest drugstore chains in the U.S., Rite Aid has been struggling for several years. As customers increasingly shift their purchasing habits toward online platforms and digital healthcare services, the company’s physical locations have seen a decline in foot traffic.
The closures represent a drastic step in the company’s ongoing Chapter 11 bankruptcy proceedings, which were first initiated in October 2023. This bankruptcy marks the second time Rite Aid has sought legal protection from its creditors in less than a year, underscoring the depth of the company’s financial struggles. Rite Aid has long dealt with reduced profit margins, especially in the face of aggressive competition from industry giants like Walgreens, CVS, and increasingly, Amazon’s growing presence in the healthcare sector.
Another factor contributing to Rite Aid’s downfall is the company’s involvement in legal battles over its role in the opioid epidemic. The company has faced multiple lawsuits from local governments and individuals accusing it of contributing to the crisis by failing to adequately monitor prescriptions and distribution. These ongoing legal troubles have placed additional financial burdens on the company, complicating its efforts to regain a foothold in the competitive pharmaceutical industry.
Retail Industry Shifting Rapidly
Rite Aid’s decision to close a significant portion of its stores reflects a larger trend within the U.S. retail industry. Across the country, many well-established chains are struggling to adapt to the rapid changes in consumer behavior, particularly the rise of online shopping.
E-commerce platforms like Amazon have fundamentally altered the way Americans shop for healthcare products, including over-the-counter medications and prescriptions. Additionally, digital prescriptions and home delivery services have grown in popularity, further decreasing the need for physical pharmacies. With rising operational costs, including rent, wages, and utilities, many traditional brick-and-mortar stores are facing untenable business models, and Rite Aid is no exception.
Experts predict that the trend of retail store closures will continue across various sectors. According to a recent report, approximately 45,000 physical stores could close in the U.S. by 2030. This shift away from traditional retail spaces is not limited to pharmacies alone. Big-box retailers and department stores are also facing similar struggles as consumers increasingly opt for convenience over in-person shopping experiences.
Rite Aid’s Future and Restructuring Efforts
While Rite Aid is closing a substantial number of locations, the company’s long-term strategy remains focused on restructuring and strengthening its remaining operations. Rite Aid has stated that it plans to concentrate on its more profitable stores, focusing on locations that continue to bring in revenue. The company is also pursuing ways to enhance its digital presence and expand its offerings through e-commerce platforms.
Despite these efforts, it remains to be seen whether Rite Aid can regain its profitability. Many analysts have expressed skepticism about the company’s ability to recover, particularly given the ongoing legal challenges and the continued rise of e-commerce in the pharmacy industry. Without substantial changes in how it operates and competes, Rite Aid could face further store closures and potential financial instability in the years to come.
The company is currently in talks with potential buyers for its remaining stores. However, the future of Rite Aid’s brand and its place in the U.S. pharmacy industry remains uncertain. For now, the company continues to focus on navigating its financial restructuring while attempting to retain as much of its market share as possible.