Rite Aid to Close or Sell All Drugstores: What to Expect

Article Summary –

Rite Aid is undergoing another bankruptcy filing, resulting in the closure or change in ownership of its stores over the next few months, with the intention to sell prescription files, inventory, and other assets. While stores remain operational for now, Rite Aid will cease issuing rewards points, honoring gift cards, and accepting returns or exchanges, and customers may experience more sparsely stocked shelves. The company’s financial difficulties stem from longstanding losses, increased theft, court settlements over opioid prescriptions, and competition from online shopping and discount retailers, prompting a reliance on Chapter 11 bankruptcy as its only viable path forward.

Rite Aid customers might experience store closures or ownership changes soon, as the drugstore chain faces another bankruptcy. The company is selling prescription files, inventory, and other assets while closing distribution centers and stores. Although stores currently remain open, lack of new inventory could lead to empty shelves.

“Stores will become increasingly spartan,” predicted retail analyst Neil Saunders. Rite Aid operates 1,245 locations across 15 states, prominently in New York, Pennsylvania, and California, which has 347 stores.

How long will stores remain open?

Rite Aid expects most stores to operate for a few more months. Eventually, all locations will close or change ownership. In the meantime, customers may still fill prescriptions, receive immunizations, and shop in-store or online.

Rite Aid has announced it will stop issuing customer rewards points, and gift cards or exchanges won’t be honored starting next month.

What will happen to my prescription records?

Rite Aid plans to sell prescription records to other drugstores, grocers, or retailers with pharmacies, aiming for a smooth transfer of customer prescriptions. However, there’s no certainty these files will stay near closing locations.

This could be problematic, especially in rural areas with limited nearby pharmacies, Saunders noted. Prescription files can be valuable, connecting new stores with regular customers.

How did Rite Aid reach this point?

Based in Philadelphia, Rite Aid has faced store closures and losses for years, leading to a Chapter 11 bankruptcy filing in 2023, seen as its only path forward. Financial challenges have intensified.

Rite Aid and competitors struggle with shrinking prescription profits, increased theft, opioid-related settlements, and competition from online and discount retailers.