Rite Aid’s Retreat: California Confronts Growing Pharmacy Deserts
Rite Aid, once a staple in California’s healthcare landscape, is significantly reducing its presence with plans to close an additional 22 stores in the state this year. This move follows last year’s announcement of 45 closures, bringing the total to a staggering 67 locations facing the axe in California alone. The closures are part of a broader strategy by the struggling pharmacy chain, which declared bankruptcy in October after accumulating $3.3 billion in debt.
The financial turmoil facing Rite Aid is profound, with the company reporting approximately $3 billion in losses since 2020, according to its filings with the U.S. Securities and Exchange Commission (SEC). The bankruptcy filing in October indicated an initial plan to close 154 locations nationwide. However, subsequent filings have increased the total number of store closures to 431, underscoring the depth of Rite Aid’s challenges.
The closures in California span from Los Angeles to Temecula, including both urban and rural areas, and are likely to exacerbate the issue of pharmacy deserts. Pharmacy deserts are areas where access to pharmacy services is limited or non-existent, posing significant health risks to communities. The concept has gained attention as both independent and chain pharmacies have shuttered across the country.