After years of expansion, America’s biggest drugstore chains are pulling back, fast. What began as a response to shifting post-pandemic habits has now become a major reset. Hundreds of retail pharmacies are shutting down, signaling a dramatic change in how these businesses operate, survive, and serve communities.
Why the Closures Are Happening
Retail pharmacies are facing pressure from all sides. Soaring inflation has driven up wages and supply costs. Interest on corporate debt is more expensive than ever. On top of that, retail theft is on the rise. But it’s not just about cost, competition has exploded. Pharmacies now go toe-to-toe with giants like Walmart, Target, and Costco, plus online players like Amazon and CostPlus Drugs, started by Mark Cuban. With profits squeezed and foot traffic shifting, companies are pulling out of locations that no longer make financial sense.
CVS Starts the Domino Effect
CVS was one of the first to act. Back in 2021, it revealed plans to close 900 stores—about 10% of its total—over three years. The strategy has continued steadily, with 271 additional stores announced for closure in early 2025. CVS insists the decisions are data-driven, based on community needs, changes in local population, and ensuring people still have access to nearby pharmacies.
Walgreens Tightens Its Belt
Walgreens took a hard look at its 8,600-store footprint and decided that over 1,200 locations needed to go. Half of those closures are planned for 2025. The numbers are telling—only around 6,000 stores are profitable. That puts pressure on the company to streamline operations and preserve margins wherever possible.
Rite Aid’s Decline Turns Desperate
Rite Aid’s troubles run deeper. The company filed for Chapter 11 bankruptcy in October 2023, shutting down 800 of its 2,100 stores. But the spiral didn’t stop there. In May 2025, a second bankruptcy filing under the name New Rite Aid LLC triggered even more closures.
By late June, the company had filed court notices to shut down a total of 947 stores across 11 states. That includes 40 in California, 30 in Pennsylvania, and 20 in New York, along with dozens more in places like Maryland, Washington, and Connecticut. All signs point to a full-scale exit, with the remaining 1,240 stores expected to close before the bankruptcy process ends.
What It Means for Consumers and Communities
Rite Aid’s closures alone have stretched across 13 states, with California (237), Pennsylvania (233), and New York (121) hit hardest. In some areas, the loss of a local pharmacy doesn’t just mean a longer drive, it means disrupted access to prescriptions, vaccines, and basic health support.
This Is the New Reality
America’s drugstore sector is in the middle of a deep transformation. What was once a stable pillar of local neighborhoods is now becoming leaner, more strategic, and less physical. As chains retreat from unprofitable zones, they’re betting on fewer but better-performing stores, and increasingly, digital solutions.
It’s not the end of the drugstore. But the era of one on every corner? That might be.
