why are rite aid stores closing

Rite Aid stores are closing primarily due to persistent financial challenges and bankruptcy proceedings. The company has filed for Chapter 11 bankruptcy protection twice in less than two years, with the most recent filing in May 2025. Financial woes intensified by a rapidly evolving retail and healthcare landscape, including mounting debt, sluggish sales amid heightened competition, inventory shortages, and a suboptimal lease portfolio, have contributed to this situation. As a result, Rite Aid is closing or selling off all its stores nationwide, with over 1,000 locations already designated for closure. These closures coincide with similar trends at other pharmacy chains like CVS and Walgreens, creating concerns about "pharmacy deserts" where communities lack sufficient access to local drugstores and prescription services. Rite Aid is working to transfer customer prescriptions to other pharmacies to ensure continuity of care during this transition.