Major Pharmacy Chains Announce Store Closures Amid Financial Struggles

PHILADELPHIA, PA — Major pharmacy chains CVS, Walgreens, and Rite Aid are closing hundreds of locations across the United States amid shifting consumer demands and financial challenges. Rite Aid, which filed for bankruptcy for the second time on May 5, plans to close over 300 stores after previously filing for Chapter 11 in October 2023.

Rite Aid has entered into sale agreements with CVS Pharmacy and Walgreens as part of its bankruptcy proceedings. CEO Matt Schroeder emphasized the aim is to ensure that customers continue receiving necessary pharmacy services without interruption during this transition. Rite Aid operated 1,240 stores across 15 states prior to filing.

On May 15, Rite Aid announced agreements to transfer assets from several locations. The U.S. Bankruptcy Court of New Jersey approved these agreements on May 21, ensuring that customers will still have access to services like prescription refills and immunizations.

Additionally, Walgreens, under CEO Tim Wentworth, is also implementing a major restructuring plan. In October 2024, the chain revealed its intention to close approximately 1,200 underperforming stores as part of a cost-cutting strategy. So far, Walgreens has closed about 70 stores in its first fiscal quarter, with further closures planned through 2025.

Meanwhile, CVS has confirmed plans to close an additional 270 locations by 2025. The company has shuttered roughly 900 stores between 2022 and 2024 as it seeks to optimize its operations based on consumer patterns and community health needs.

According to CVS spokesperson Amy Thibault, none of the planned closures will affect stores in Utah, though a detailed list of closures has not been provided publicly. CVS operates over 9,000 locations nationwide, making it the largest pharmacy chain in the country.

The landscape of retail pharmacies is undergoing significant changes, with recent reports indicating ongoing store closures not only from these pharmacy giants but also across various retail sectors.

As these companies navigate their financial futures, the retail pharmacy industry remains in a state of transition, prompting concerns from consumers about accessibility to essential health services.