As the Covid-19 pandemic faded, drugstore chains across the U.S. began a sweeping overhaul of their store networks. The transition away from strict health protocols also marked a turning point in retail strategy. Major players in the sector started closing hundreds of locations to manage costs and stay competitive in an evolving market.

Economic Pressures and Rising Competition

Retailers pointed to several ongoing challenges: rising labor and product costs driven by inflation, high interest rates on debt, and increasing incidents of retail theft. But competition was just as fierce. Drugstore chains were battling big-box retailers like Walmart, Target, and Costco, as well as online disruptors such as Amazon and Mark Cuban’s CostPlus Drug Company. This intense landscape pushed drugstore brands to exit underperforming markets and focus on more profitable areas.

CVS: Strategic Closures for Long-Term Gains

CVS was one of the first to take decisive action. In 2021, the company announced it would shut 900 of its 9,900 stores, 300 per year from 2022 through 2024. That strategy continued into 2025, with CVS confirming in February that 271 more stores would close. CVS emphasized that store closures were planned with community needs in mind, including pharmacy access, population changes, and store density. The company aimed to ensure alternative access points remained in place for affected areas.

Walgreens: Evaluating Store Footprint

Walgreens, which operates about 8,600 locations, evaluated 2,000 stores and decided to shutter 1,200 of them. Out of those, 500 stores are set to close in fiscal year 2025. With only 6,000 of its locations reportedly profitable, Walgreens is under pressure to optimize its footprint and protect its bottom line.

Rite Aid’s Ongoing Collapse

Rite Aid’s situation has been even more severe. After filing for Chapter 11 bankruptcy in October 2023, the company closed around 800 of its 2,100 stores. But that wasn’t the end. On May 5, 2025, it filed for bankruptcy again, this time under New Rite Aid LLC, and began a new wave of closures.

As of June 20, Rite Aid submitted its eighth notice to the U.S. Bankruptcy Court to close 118 more stores, bringing its total closures to 947. These stores span 11 states, including 40 in California, 30 in Pennsylvania, and 20 in New York. Other affected states include Washington, Connecticut, Maryland, New Hampshire, New Jersey, Delaware, Idaho, and Massachusetts.

A Chain Reaction Across the Country

These 118 stores were part of a broader series of closure notices Rite Aid filed throughout May and June. The first eight notices listed 829 store closures in 13 states, with California (237), Pennsylvania (233), and New York (121) facing the most significant impacts.

According to court filings, Rite Aid plans to close all remaining stores, around 1,240 in total, before its bankruptcy case concludes. With this massive shake-up, the U.S. drugstore landscape is undergoing a seismic shift, reshaping how and where Americans access essential health services.