Rite Aid, once a major player in the U.S. pharmacy market, has taken drastic steps in its bankruptcy restructuring.
The company has now closed all of its stores in Michigan and Ohio, leaving thousands of customers to find new pharmacies.
This move is part of a larger downsizing effort. Since filing for Chapter 11 bankruptcy in October 2023, Rite Aid has shuttered 856 locations, with 74 closures in August alone.
The company’s store count has fallen sharply from over 2,000 before the bankruptcy filing.
Neil Saunders, managing director of GlobalData, told DailyMail.com, “Rite Aid is hoping to get itself back onto a firm financial footing, although it will emerge from bankruptcy as a much smaller business with far fewer stores.”
TRENDING: Auto Insurance Rates Soar Across the Country During First Half of 2024
The pharmacy chain faces stiff competition from big-box retailers and online giants like Amazon, which entered the pharmacy business in 2020.
Rite Aid has also struggled with lawsuits related to opioid prescriptions.
Rite Aid confirms exit from Michigan market with latest store closings https://t.co/QtlSJdmsdf
— Bridge Michigan (@BridgeMichigan) August 14, 2024
The company appears to be retreating from markets where it can’t effectively compete with CVS and Walgreens, instead focusing on areas where it can secure a strong second place, such as Pennsylvania.
A Rite Aid spokesperson confirmed the closures, stating, “Rite Aid regularly assesses its retail footprint to ensure we are operating efficiently while meeting the needs of our customers, communities, associates and overall business.”
The company aims to emerge from bankruptcy with about 1,300 stores, down significantly from its peak of 5,059 locations in 2008.
Rite Aid’s troubles are part of a broader trend in U.S. retail.
Nearly 2,600 stores closed in the first four months of 2024, with projections suggesting up to 8,000 closures by year-end if this pace continues.
Other retailers facing similar challenges include dollar store chains, fashion retailers like Express and Rue21, and furniture stores like Badcock Home Furniture & More.
Even industry giant Walgreens has announced plans to close a “significant” number of its 8,700 U.S. stores.
READ NEXT: Home Depot CEO Issues Warning on Consumer Spending, Housing Market and the Economy
As Rite Aid works to stabilize its business, many communities will see changes in their local pharmacy options.