Is Rite Aid Leaving Utah? Dozens of Stores Face Shutdown

Inflation isn't just killing the mom and pop stores in Utah, it is taking down some big dogs as well. K-Mart is now gone, Joann Fabric's is on it's way out and several restaurant chains are shutting down close to half of their restaurants nation wide. Our local JC Penny, Kohls and Subway may now be on the chopping block as the national brands have all announced some store closures this year. Rite Aid looks like it could be next to fall victim to the low foot traffic and massive inflation we are all facing.

Rite Aid might be declaring bankruptcy for a second time.

The drugstore chain might be in trouble again. Just two years ago, Rite Aid filed for bankruptcy. They closed more than 800 stores nationwide.

The company came out of bankruptcy in fall of 2024 and reportedly saved about $2 billion. Unfortunately, the move didn't work for long because it's reported that the chain is trouble once again. Rite Aid added this disclaimer to their website:

screen shot from riteaid.com

Announcements about no longer taking rewards points and gift cards doesn't really bolster hope that our Ogden, Layton and Salt Lake City stores will stay open.

Our sister station in WIBX New York is reporting that they are starting to shut down store there.

Read More Here: Ride Aid Closing Down 60 Locations in New York

In the article it states that, "Bloomberg reports the chain is considering filing for bankruptcy a second time, which puts its remaining 1,200 locations into uncertain territory.
The report claims Rite Aid is struggling with debt and low cash flow, so it is considering selling off more of its assets. However, sources to the outlet claim Rite Aid may be going out of business entirely.

Unnamed sources told Bloomberg that Rite Aid is planning to sell off its individual stores and close down the rest. "

Rite Aid Isn't the Only Pharmacy Chain That's Struggling

Also according to Bloomberg, the top two retail pharmacies are struggling.

CVS comes in as #1 and is also looking to close stores in the coming months. The chain will reportedly close down about 270 locations this year.

Walgreens comes in at #2 and is reportedly cutting about 1,200 stores by 2028 after it was acquired by the private equity firm, Sycamore Partners. Walgreens was purchased for $23.7 billion.

With consumers doing more and more transaction online, the need for corner pharmacies is diminishing. So national chains will need to reformat and rebrand their approach to the public to stay in business.