Rite Aid, which at its zenith was the third-largest pharmacy chains in the U.S., has officially seen the last of its stores shut their doors. It’s the end of an era for the chain, which began in 1962. The closure follows up on a dramatic financial crisis that ended in the company filing for bankruptcy earlier in 2023. This latest decision to shutter all stores is indicative of the company’s continued struggle in efforts to go through chapter 11 reorganization and settle looming litigation lawsuits.
Founded in 1962, Rite Aid continued to expand and became one of the largest pharmacy chains in the U.S. In recent years, the company faced mounting fiscal woes. On top of that, it was under a Justice Department investigation for its role in the opioid crisis. In 2022, Rite Aid agreed to settle some of the lawsuits accusing it of contributing to opioid distribution for as much as $30 million. The company’s subsequent bankruptcy filing in 2023 was an attempt to settle these long-persisting legal battles and reorganize the company’s operations.
By early October of 2023, data showed that fewer than 100 Rite Aid stores were still in operation. On its way to final closures, the company thanked its loyal customers on its website. The message read:
“All Rite Aid stores have now closed. We thank our loyal customers for their many years of support.” – Rite Aid’s website
As Rite Aid shutters stores nationwide, advocates worry we may be creating “pharmacy deserts” throughout the U.S. According to the experts, millions of Americans are completely losing access to local pharmacies, requiring them to travel farther and longer for their most-needed prescriptions. This trend isn’t just happening at Rite Aid. Other pharmacy chains, such as CVS, have closed tens of other locations in recent years for other unrelated strategic reasons. In reality, since 2021 CVS has closed over 1,000 stores in a move that is actually part of a larger long-term strategy.
Rite Aid’s struggles illustrate a seismic shift in the retail pharmacy environment. This illustrates the challenge that all major, not just individual chains face, but all of our healthcare system. The potential loss of Rite Aid would further increase patients’ difficulty in accessing their healthcare. Millions of Americans rely on neighborhood pharmacies, and this policy will hit them especially hard.