U.S. News
Rite Aid Struggles to Stay Afloat, Closes Nearly 700 Stores Since Bankruptcy Filing
Clear Facts
- Rite Aid is shuttering more stores, most recently in Michigan and Ohio, marking a total of 694 closures since the company filed for bankruptcy in October.
- The closures account for about 34% of the 2,063 stores Rite Aid had at the time of their bankruptcy filing.
- Rite Aid, once one of the largest pharmacy networks in the United States, has had difficulties competing with other giants like CVS, Walgreens, and Target. These struggles have led to unprofitable stores and the subsequent widespread closures.
The retail pharmacy landscape in the United States is in flux as one of the key players, Rite Aid, continues to close stores nationwide. Michigan and Ohio residents have been particularly affected by these closures.
Just in the past week, the pharmacy chain has closed 27 stores in Michigan and 13 in Ohio. These recent closures contribute to the total of 694 stores that have been shut since Rite Aid filed for bankruptcy last October.
“Rite Aid has one of the largest pharmacy networks in the United States, with 2,100 outlets selling medicines and health products as well as food and hygiene items,” an article noted. However, the company has been struggling to stay afloat amidst poor sales and legal issues surrounding its alleged role in the opioid crisis.
The total number of closed stores is nearing the grim figure of 700, which was predicted by one analyst as the “worst-case scenario” around the time of Rite Aid’s bankruptcy filing. This prediction was markedly higher than the estimates of other analysts, who projected the closure of as few as 200 to 300 stores.
“Rite Aid will operate 58 stores in Michigan and 48 stores in Ohio, based on an analysis of court filings and data,” a recent report stated. These closures have hit Rite Aid’s fourth and fifth-largest markets hardest, with store closures exceeding 75% in Michigan and 74% in Ohio.
Rite Aid’s struggle to compete with other retail giants like CVS, Walgreens, and Target has significantly contributed to the company’s downfall. Rite Aid CEO Jeffrey Stein has conceded that the company was “burdened by unprofitable stores.” As the pharmacy chain continues to close stores, it becomes increasingly clear that Rite Aid’s business model was not sustainable in the current competitive retail environment.
Let us know what you think, please share your thoughts in the comments below.
Al Dee
August 4, 2024 at 6:44 pm
Rite Aid has been filing for bankruptcy about once every decade since the 90’s. And it has nothing to do with the competition. In the town where we live, we have two – TWO – locally owned pharmacies along with Walgreens, Target, CVS, and Walmart pharmacies and the small locally owned ones are both doing great. — It’s all about service and having the medicines in stock for their customers – when they need them, which Rite Aid has always seemed to have a huge problem doing. It doesn’t take long for customers to get fed up with trying to get their prescriptions filled without success before going somewhere else – permanently. — Also, until the last several years (since last filing for bankruptcy) Rite Aid made no effort to keep their store clean and stocked as well. They finally cleaned up their stores and kept items in stock better – but last ditch efforts that they should have been doing all along – will never bring back customers. They dug their grave and now it looks like they may finally have to be put in for good.
bill blackwell
August 4, 2024 at 7:22 pm
Did not tell you where the stores were closing, should list by town and state to be of help.
Tim
August 5, 2024 at 3:46 am
yes they did Bill, read the story so not to look so uneducated!!! darn!!