Rite Aid closes stores in Midwest

Rite Aid has confirmed the closure of all its Michigan stores following its bankruptcy filing in 2023, a move that underscores the company's ongoing financial difficulties. The pharmacy chain has faced significant challenges in recent years, particularly due to lawsuits related to its role in the opioid crisis. In 2022, Rite Aid settled for up to $30 million after being accused of contributing to the oversupply of prescription opioids, which has compounded its financial woes. The company has been grappling with high rent costs for underperforming locations, leading to the closure of over 200 stores in recent years. The latest announcement affects more than 170 stores in Michigan, with additional closures filed in June for 27 more locations in Michigan and Ohio. This marks a significant retreat from the Midwest, as Rite Aid has now shut nearly all its stores in these states. Since October 2023, Rite Aid has closed a total of 856 stores across the United States, representing more than 40% of its original 2,000 locations. The closures have primarily targeted Michigan and Ohio, with 74 stores shuttered in August alone. Analysts suggest that Rite Aid's strategy reflects an inability to compete with larger chains like CVS and Walgreens, which are also facing their own financial challenges. The broader retail landscape is experiencing a "retail apocalypse," with various chains, including Walmart and Dollar stores, also announcing closures due to financial pressures and changing consumer behaviors.