Drugstore Downsizing: CVS, Walgreens, Rite Aid To Close Nearly 1,500 Stores

[appalachiablue]

- Forbes, Sept. 27, 2023.

The nation’s largest drugstore chains are facing mounting pressure, and they’ve prescribed the same script to cure their ills: closing stores.

Already drowning in $3.3 billion in debt and facing pending opioid-related lawsuit settlements, Rite AidRAD -3.6%, the nation’s third-ranked pharmacy chain behind CVS and Walgreens, is preparing for bankruptcy.

As part of ongoing negotiations, it proposes to close 400 to 500 of its 2,100 stores, though its bondholders want even more to shutter. Its retail pharmacy segment generated $17.8 billion last year and $288 million in adjusted EBITDA. Earlier this year, number two CVS completed a strategic review and announced plans to shutter 900 stores between 2022 and 2024. It’s already pulled the plug on 300 of them.

GlobalData analyst Neil Saunders shared with CNN that too many of its stores have fallen into disrepair, with “bad lighting, depressing interiors, messy merchandising and a weak assortment of products. They are not destinations or places where people go out of anything other than necessity."...
https://www.forbes.com/sites/pamdanziger/2023/09/27/drugstore-downsizing-cvs-walgreens-and-rite-aid-to-close-nearly-1500-stores/

[bucolic_frolic]

1. They got away from being pharmacies

and tried to sell food like a convenience store, toys like Walmart, and general merchandise that wasn't popular. My local CVS has mid 1980s design with carpeting, wide shelves, and junk.

Looks like small town independent but affiliated pharmacies will be the place to find traditional product lines.

[appalachiablue]

2. In this process I hope the word gets out esp for people who don't

have an independent pharmacy nearby/convenient to use. My CVS is very good, sorry if it goes.

[Rebl2]

12. So is mine

They are nicer to me than the independent drugstore I used to go to-in fact they eventually closed. There were only three people that worked there and they were all right wingers. Quit them and went to CVS that was a little closer. Oddly in my town of 30,000 there are two CVS. I hope mine does not close because they are so kind to me and my husband.

[appalachiablue]

15. Glad to hear that about your CVS, but the indy store, a bad scene, wow. So here's

to CVS retaining some stores. In fact, I may ask my CVS store mgr. what's up and let them know how our experiences have been very good and we really value them in the community. Who knows.

I read similar closure news about major BANKS recently, how many branches were expected to shut down in the coming months, Wells Fargo, BOA, etc. When I inquired at my main location, the manager said they would very likely remain open. Yay!

He said we could add our feedback to the survey in the email sent for that day's transaction. Good to know, and here's hoping.

[regnaD kciN]

3. In our exurban "small town"...

…every “independent” pharmacy has been swallowed up by one of the “big three.” That’s also true for every community I know around here.

[appalachiablue]

5. IK, I'll check if one local indy RX is still open, yrs since I've been there. This is a huge no.

of closures in a short period of time, by 2024. People will need to start looking for alternatves, or else wait and scramble.

There are people, esp older, and low income who aren't familiar with or able to order and pay online.

And will this deter people from getting preventive shots and more - Flu, Covid, RSV, Shingles.

[mercuryblues]

4. Really? I have 3 CVS stores within a five mile radius,

2 of them have a Walgreens across the street.

[appalachiablue]

6. Yeah, it's crazy. In my area the stores aren't run down dumps. I think this

massive change is related to chains going 'online retail.' It'll be interesting, a struggle for many who don't use the internet for purchasing and lack an independent pharmacy in their area.

How do you get a flu shot or vax online? Not so funny...

[Joinfortmill]

7. 👍

[Rebl2]

14. Remember how

Walgreens used to try and build close to CVS’s. They built close to one in my town but it didn’t hurt CVS. The other CVS in my town there was nowhere for a Walgreens to build close by. That is the one I go to-less than five minutes away.

[appalachiablue]

16. Pharmacy Wars, and now many will disappearing. I still miss bookstores and more.

[Rebl2]

18. I never

had any independent book stores near me only stores like Walden books (years ago), Barnes and Noble and another I can’t think of right now. They are long gone now. If I want to go to Barnes and Noble I have to drive half hour away and the traffic to get there not worth it.

[Freddie]

8. Maybe 10 years ago

A car dealership at a busy intersection was torn down and replaced by a huge Rite-Aid, while they closed the one downtown that people could walk to. Now the “new” Rite-Aid is closing, leaving us with an ugly empty building.
Seems the trend in pharmacies is to locate within existing businesses, like Target, Walmart or supermarkets. Also I wonder how much business they’re losing to convenient mail-order prescriptions for ongoing issues.

[appalachiablue]

9. Good pts, a lot of issues and what timing during a pandemic..I have an

aversion to big box stores, not my thing. Walmart for pharmacy stuff, same.

[Mosby]

10. I think they might be hurting themselves with pricing.

CVS, walgreens have ridiculously high OTC/HABA prices and they don't seem to care, they know that some people don't pay attention to prices and others can't get around enough to shop at Target or Walmart. I'm not talking about a few cents, a small bottle of ibuprofen will be dollars higher at walgreens vs Target.

[Elessar Zappa]

11. Yeah,

the generic CVS stuff will be much higher priced than name-brand equivalents at Walmart. They need to lower their prices.

[appalachiablue]

17. I understand that sure, being cost conscious is impt. for many people esp in these times.

[3Hotdogs]

13. CVS, Millburn, N.J., is a depressing place.

Lighting upgrade might improve it.