Iconic bankrupt retail chain closes its remaining stores

The U.S. drug store chain sector is facing fierce headwinds from competing sectors, such as mass merchandiser retailers, like Costco and Sam's Club, major supermarket chains, and mail order pharmacies, according to the new 2025 U.S. Pharmacy Study from J.D. Power.

Overall satisfaction with mail order pharmacies increased, while chain drug store overall satisfaction declined far below other brick-and-mortar pharmacies operated by member warehouse clubs like Costco and Sam's Club or supermarkets, the study said.

Drug store chain satisfaction has declined

“Chain drug store customers are significantly more likely than supermarket or mass market merchandiser pharmacy customers to say they ‘definitely will’ or ‘probably will’ switch pharmacies in the next 12 months,” Christopher Lis, managing director of global healthcare intelligence at J.D. Power, said in a July 29 statement.

“That openness to switching, combined with steadily increasing satisfaction scores at mail order pharmacies, helps set the stage for a tipping point in the pharmacy space,” Lis said.

Consumer attitudes toward drug store chains led to lower foot traffic and declining revenue, which resulted in some chains closing store locations and, in extreme situations, filing for bankruptcy protection.

Huge drugstore chain Rite Aid filed for Chapter 11 bankruptcy for the first time on Oct. 15, 2023, and closed about 800 of its 2,100 stores in a reorganization.

The pharmacy chain's subsequent entity, New Rite Aid LLC, filed for Chapter 11 protection on behalf of the retailer a second time on May 5, 2025, and began closing all of its stores, estimated to be about 1,240 locations at the time.

Rite Aid is closing 1,250 store locations in its bankruptcy.

Spencer Platt/Getty Images

Rite Aid closes more stores than expected

Rite Aid is closing more stores than its original estimate, as it filed its 15th notice of additional store closing locations in the U.S. Bankruptcy Court for the District of New Jersey on Aug. 1, seeking approval to close 13 more stores and liquidate their assets.

The stores add to previously designated locations for closing in its second bankruptcy, for a total of 1,250 stores.

Objections to the additional store closing notice are due by Aug. 11.

The debtor has not indicated if any more stores remain to be closed. The retailer filed its final location closing order on July 10.

More bankruptcy

Rite Aid's 15th additional closing notice includes 13 store closures in two states, Pennsylvania (2) and Washington (11).

Rite Aid's store closings in 15th additional closing notice:

Grindstone, Pa. (1)
California, Pa. (1)
Seattle (4)
Bellevue, Wash. (2)
Spokane, Wash. (1)
Pasco, Wash. (1)
Gig Harbor, Wash. (1)
Arlington, Wash. (1)
Lake Forest Park, Wash. (1)

Rite Aid already filed 15 notices of store closing locations with the original notice and an additional closing notice on May 9, followed by additional closing notices on May 15, May 23, May 30, two on June 6, June 13, June 20, June 27, July 3, July 11, July 18, July 21 and July 25.

Rite Aid total closures by state:

California (348)
Connecticut (15)
Delaware (29)
Idaho (7)
Maryland (23)
Massachusetts (4)
New Hampshire (47)
New Jersey (61)
New York (178)
Ohio (4)
Oregon (36)
Pennsylvania (354)
Vermont (5)
Virginia (26)
Washington (113)

Major drugstore chain CVS in 2021 started a downsizing campaign to close 900 of its nearly 9,900 stores to reduce costs and losses, cutting 300 locations each year in 2022, 2023, and 2024.

The company widened the downsizing campaign in 2025, revealing in its annual report in February that it would close 271 additional stores this year.

Walgreens evaluated 2,000 of about 8,600 stores for potential closure and identified 1,200 locations to shutter over the next three years, with 500 set to close in fiscal year 2025.

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