A major pharmacy retailer is set to close nearly 200 stores next month, marking another wave in the ongoing trend of drugstore downsizing across the U.S. This move, which has been seen from multiple retailers in the past few months, is proof of the industry’s challenges. Declining prescription reimbursements, rising theft, and shifting consumer habits toward online shopping and big-box retailers have only made this problem worse.
As these stores shutter, customers may have reduced access to in-person beauty products and essentials, potentially changing the look of their beauty hauls.
All About The Closures
Rite Aid, a major pharmacy chain operating around 1,240 stores across 15 states, has filed for Chapter 11 bankruptcy for the second time in under two years and announced plans to close or sell all its locations in the coming months. This marks a significant shift from previous downsizing efforts, as the company now aims to shut down its entire retail footprint, including 178 stores in New York alone, with layoffs starting in June 2025.
While stores remain open, shelves are increasingly bare due to halted inventory orders. Rite Aid is working to ensure a smooth transfer of customer prescriptions to other pharmacies. The company also talks with potential buyers who may keep some stores open under new ownership.
Financial Struggles Leading to Bankruptcy
Despite emerging from their first bankruptcy in September 2024 after cutting $2 billion in debt and closing around 500 stores, Rite Aid continued to grapple with heavy debt, still carrying $2.5 billion. The company’s inability to secure additional financing and the failure of vendors to relax restrictive payment terms forced it back into bankruptcy protection, where it now seeks to sell most of its assets while keeping stores open and maintaining pharmacy services during the transition.
“The first bankruptcy did little to resolve the chain’s issues, and it has been teetering on the edge of survival for quite some time,” said Neil Saunders, the managing director of GlobalData.
How to Prepare for Store Closures
To prepare for Rite Aid’s store closures, customers should start by transferring their prescriptions to nearby pharmacies as soon as possible. The company works to facilitate smooth prescription transfers, but cannot guarantee that all files will stay local. It’s also wise to use any remaining gift cards before they stop being accepted next month and to expect limited product availability as stores have stopped ordering new inventory.
Shoppers should monitor announcements about which stores will close or be sold, and consider switching to alternative retailers or local pharmacies to avoid disruptions in accessing medications and beauty products.
Effect on Rural and Smaller Communities
In places like Ransomville, New York, where the local Rite Aid is the only pharmacy within miles, the shutdown will create “pharmacy deserts,” leaving residents, especially older adults without easy online access, forced to travel 30 to 50 miles or more for prescriptions. “Not knowing where they’re going. Not knowing the people there,” said Nick Fabrizio, senior lecturer, Cornell University. “It’s unfortunate that now they must drive even further for prescriptions, 30, 40, 50 miles or more.”
This growing trend of pharmacy closures in rural America exacerbates healthcare access disparities and puts additional strain on communities already facing limited medical resources.
Other Options for Beauty Hauls
Beauty shoppers increasingly turn to alternative options for their beauty hauls as it’s more convenient and readily available. Many are exploring affordable makeup dupes. Rite Aid has championed this trend with its exclusive RYSHI clean beauty line, offering a wide range of products under $20, catering to diverse beauty needs while emphasizing safer ingredients.
As physical store access diminishes, consumers lean more on online shopping and other retailers to find these budget-friendly, effective beauty alternatives. “For years, customers have turned to our Rite Aid brands for trusted, affordable items, and we’re excited to introduce them to RYSHI, a brand that reflects our ongoing commitment to make cleaner ingredients and offerings widely available for everyone,” said Pamela Kohn, SVP, Chief Merchandising Officer at Rite Aid. “Created to ‘let the real you shine through,’ we hope that RYSHI users feel empowered with confidence to be the best version of themselves with a little help from our products.”
What This Means for Your Beauty Budget
These store closures may have a mixed impact on your beauty budget. On one hand, fewer physical stores may limit access to affordable drugstore beauty brands like CoverGirl, Garnier, and Revlon, which Rite Aid traditionally stocked, potentially pushing shoppers toward pricier alternatives or online marketplaces like Amazon.
On the other hand, the increased competition among remaining retailers and online sellers could drive more discounts and deals, helping budget-conscious consumers find quality beauty products at lower prices. With Rite Aid halting new inventory orders, shoppers might experience reduced product variety and availability in the short term, making it important to plan purchases and explore multiple shopping channels to ensure you get what you’re looking for.
The Beauty Industry’s Response
The beauty industry is closely watching Rite Aid’s bankruptcy and store closures, with many brands and retailers preparing to fill the gap left by the pharmacy giant’s exit. Some beauty brands are accelerating partnerships with other drugstore chains and online platforms to maintain product availability and reach consumers who previously relied on Rite Aid for affordable beauty essentials.
Retailers and brands are strategizing to ensure that customers’ beauty hauls remain accessible, even as the traditional pharmacy retail landscape undergoes significant upheaval.
Impact on Beauty Product Availability
Due to cash flow issues and strained vendor relationships, the company has been unable to consistently restock inventory, leading to increasingly bare shelves, especially in the front-end sections where beauty and impulse-buy products are typically displayed. This shortage reduces the variety and quantity of beauty items available for shoppers and diminishes the appeal of in-store shopping for many customers.
As Rite Aid continues its bankruptcy proceedings and store closures, customers should expect limited product selection. They may need to turn to alternative retailers or online options to find their favorite beauty essentials.
Rite Aid’s Future in Beauty Retail
The company’s future will depend on balancing cost-cutting with preserving its unique beauty product offerings. Rite Aid’s store closures will reshape where and how consumers shop for beauty products, especially impacting rural customers and indie beauty brands. While alternatives exist, the transition may disrupt routines and product availability for many shoppers.
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