CVS Acquires Rite Aid, Shutters Remaining Stores Nationwide
CVS Health has expanded its presence by acquiring former Rite Aid locations as the struggling drugstore chain closes its doors nationwide. The company successfully completed the purchase of customer prescription files from hundreds of closed Rite Aid stores.
CVS Acquires Rite Aid and Shutters Remaining Stores
As of now, CVS operates 63 locations that were formerly part of Rite Aid and Bartell Drugs, specifically in Idaho, Oregon, and Washington. This strategic move also involved the transfer of prescription files from 626 pharmacies across 15 states to nearby CVS locations.
Background on Rite Aid’s Decline
Rite Aid, once a major player in the pharmacy sector with over 4,000 locations primarily on the East Coast, faced significant challenges. The company filed for bankruptcy protection in October 2023, struggling with accumulating debt and consistent annual losses over several years. After emerging from Chapter 11 bankruptcy in 2024, Rite Aid aimed to streamline operations and reduce its debt. However, the efforts proved insufficient, with the chain’s store count dwindling to approximately 1,200.
Industry Challenges
Major retail pharmacies have been closing operations due to several factors, including increased shoplifting and a shift toward online shopping. Additionally, customers are gravitating toward discount retailers, further straining traditional pharmacy models. Notably, Walgreens, which has significantly more locations than Rite Aid, is undergoing its own transition, agreeing to be acquired by private equity firm Sycamore Partners in March.
CVS Health’s Extensive Operations
Based in Woonsocket, Rhode Island, CVS Health operates thousands of drugstores and offers a large pharmacy benefits management service. Its Aetna health insurance segment currently covers nearly 27 million individuals, underscoring the company’s expansive role in the healthcare industry.
- CVS Health acquired 63 Rite Aid locations.
- Transfer of 626 pharmacy prescription files completed.
- Rite Aid filed for bankruptcy in October 2023.
- Rite Aid’s store count reduced to 1,200 after restructuring.
- Industry facing challenges from online shopping and theft.
