After 63 years in business, Rite Aid is effectively finished. The company filed for Chapter 11 bankruptcy in October 2023, emerged briefly in September 2024, and then re-filed in May 2025. Approximately 1,250 locations have closed. But Rite Aid is not an isolated case. It is part of a broader contraction in retail pharmacy that is reshaping how patients access their medications.
The Scale of Closures
Rite Aid's collapse is the most dramatic example, but the numbers across the industry are striking:
- Walgreens announced plans to close 1,200 stores over three years, with 500 closures expected in fiscal 2025 alone.
- CVS has been steadily reducing its footprint as well, closing hundreds of locations over the past several years.
- Combined with Rite Aid, roughly 2,000 fewer pharmacy locations now serve patients compared to just a few years ago.
These are not small rural locations being trimmed from the edges. Many closures are in urban and suburban areas where patients had come to rely on their neighborhood pharmacy.
Why This Is Happening
Several forces converged to create this wave of closures:
Falling reimbursement rates. Pharmacy Benefit Managers (PBMs) have steadily reduced the amount they reimburse pharmacies for filling prescriptions. For many retail pharmacies, the margin on each prescription has shrunk to the point where filling prescriptions is barely profitable, or in some cases, a loss.
Opioid litigation costs. Rite Aid, Walgreens, and CVS all faced massive legal settlements related to their role in the opioid crisis. Rite Aid's settlement obligations were a direct contributor to its bankruptcy. These costs run into the billions of dollars collectively.
Growth of online pharmacy. Companies like Amazon Pharmacy, Mark Cuban's Cost Plus Drugs, and Canadian online pharmacies have drawn patients away from brick-and-mortar stores. The convenience of home delivery, combined with often lower prices, has accelerated the shift.
Rising operational costs. Labor shortages, retail theft, and increasing real estate costs have made it more expensive to operate physical pharmacy locations, further squeezing already thin margins.
The Emergence of Pharmacy Deserts
The term "pharmacy desert" describes an area where residents must travel unreasonable distances to reach a pharmacy. Research has defined this as more than one mile in urban areas or more than ten miles in rural areas.
Pharmacy deserts disproportionately affect:
- Low-income communities where residents are less likely to have reliable transportation or internet access for online alternatives.
- Elderly populations who depend on in-person pharmacist consultations and may not be comfortable with digital platforms.
- Rural areas where a single pharmacy closure can leave an entire community without local access.
Studies have shown that patients in pharmacy deserts are more likely to skip medications, experience worse health outcomes, and use emergency rooms for conditions that could have been managed with proper medication adherence.
What Patients Can Do
If your local pharmacy has closed or is at risk of closing, there are practical steps to consider:
- Transfer prescriptions early. Do not wait until the last minute. Contact a nearby pharmacy or an online pharmacy service to arrange the transfer before your current location shuts down.
- Explore mail-order and online options. Licensed online pharmacies, including Canadian options like PlusVirtual, can deliver medications directly to your door, often at lower prices than retail chains.
- Talk to your doctor about 90-day supplies. Fewer refills mean fewer trips and less disruption if your pharmacy situation changes.
- Check provincial and state programs. Many jurisdictions have programs to help patients in underserved areas access medications.
The Bigger Picture
The retail pharmacy model that dominated for decades is under serious stress. The industry is consolidating around fewer, larger players while digital and mail-order pharmacies continue to grow. For patients, this means adapting to new ways of getting medications.
At PlusVirtual, we believe that pharmacy closures make the case for accessible online pharmacy services stronger than ever. Geography should not determine whether you can afford and access your medications. Our team is here to help patients navigate these changes and maintain uninterrupted access to the prescriptions they depend on.