Rite Aid
Rite Aid Corporation was an American retail drugstore chain that operated from 1962 until its complete closure in 2025, specializing in pharmacy services, health and beauty products, and general merchandise.[1][2] Founded by Alex Grass in Scranton, Pennsylvania, as Thrif D Discount Center, the company initially focused on discount health and beauty items before expanding into full-service pharmacies and adopting the Rite Aid name in the late 1960s.[1][3] It grew through acquisitions, such as Eckerd Corporation in 2007, peaking with over 4,500 stores across 30 states and serving millions of customers with prescription fulfillment and retail offerings.[1][4] Rite Aid encountered significant challenges from intensifying competition by larger rivals like CVS and Walgreens, declining prescription reimbursements, and substantial legal liabilities stemming from its role in the opioid crisis, where it faced accusations of dispensing excessive controlled substances without adequate oversight.[5][6] These factors contributed to mounting debt exceeding $3 billion, prompting a Chapter 11 bankruptcy filing in October 2023, followed by store closures, a brief emergence in 2024, a second filing in May 2025, and ultimate liquidation of assets, including sales to CVS, resulting in the shuttering of its final 89 locations by early October 2025.[7][8][9]History
Founding and early expansion (1962–1987)
Rite Aid was founded in 1962 by Alex Grass in Scranton, Pennsylvania, initially as Thrif D Discount Center, a discount drugstore emphasizing low prices on health, beauty, and drug products. The inaugural store generated $750,000 in sales during its first year.[3] Early operations focused on private-label goods, with the company introducing 70 such products by 1967 and expanding to over 260 by 1969.[3] Expansion began rapidly in the Northeast: five additional stores opened in 1963, entering New York; by 1964, operations reached 12 stores across Pennsylvania, New York, New Jersey, and Virginia, employing 200 people; Connecticut was added in 1965 with a total of 25 stores; and growth continued to 36 stores in 1966, including the first dedicated Rite Aid pharmacy in New Rochelle, New York, alongside a new headquarters and distribution center.[3] In 1968, the company rebranded as Rite Aid Corporation and conducted its initial public offering of 350,000 shares at $25 each on the American Stock Exchange, later moving to the New York Stock Exchange in 1970.[3][1] Organic growth combined with acquisitions fueled further proliferation. The 1969 purchase of the 47-store Daw Drug Co. elevated the count to 117 stores, while subsequent deals included the 16-store Fountain chain in 1970, 49-store Thomas Holmes Corp. and 50-store Warner chain in 1973, 52-store Keystone Centers in 1976, and 99-store Read’s Inc. for $18 million in 1977, securing dominance in Baltimore.[3] By 1972, Rite Aid operated 267 stores in 10 states and filled 6.25 million prescriptions annually, despite disruptions like Hurricane Agnes.[3][1] The 1982 opening of the 1,000th store in Durham, North Carolina, marked a milestone, followed by revenues exceeding $1 billion in 1983, earning inclusion in Forbes' top 500 companies.[3] By 1987, acquisitions of 113 SupeRx stores and 94 Gray Drug Fair stores pushed the total beyond 2,100 locations, solidifying national presence through southern market penetration.[3][1]Acquisitions and national growth (1988–1999)
In the late 1980s, Rite Aid accelerated its expansion through targeted acquisitions to broaden its presence beyond the Northeast and Mid-Atlantic regions. In 1988, the company acquired 356 Gray Drug Fair stores from Sherwin-Williams, which strengthened its foothold in the Midwest and elevated its total store count to over 2,100 locations across multiple states.[3] That same year, Rite Aid purchased 39 Begley Co. drugstores primarily in Kentucky, along with 140 associated dry cleaning operations, for approximately $20 million, further diversifying into Southern markets.[3] The early 1990s saw continued consolidation efforts, though some faced regulatory hurdles. In December 1995, Rite Aid agreed to acquire Revco D.S. Inc., the second-largest U.S. drugstore chain with over 2,000 stores, in a $1.8 billion cash-and-stock deal that would have nearly doubled Rite Aid's size; however, the Federal Trade Commission challenged the merger on antitrust grounds, leading Rite Aid to abandon the bid in April 1996.[10][11] Undeterred, Rite Aid completed the $132 million purchase of Perry Drug Stores Inc. in 1995, adding 224 stores in Michigan with $735 million in annual revenue and pushing the company's total locations toward 3,000.[3] Smaller deals, such as the 1994 acquisition of 24 Hook's Drug Stores, incrementally supported regional density.[12] The mid-1990s marked Rite Aid's pivot to national scale via its largest deal to date. In October 1996, Rite Aid announced the acquisition of Thrifty PayLess Holdings Inc. for $1.4 billion in stock plus the assumption of $900 million in debt, integrating 1,007 West Coast stores that generated $4.4 billion in sales and establishing a significant presence in California, Oregon, and Washington.[3][13] This merger, completed by December 1996, transformed Rite Aid into a coast-to-coast operator with over 4,000 stores.[3] In 1997, Rite Aid further expanded southward by acquiring K&B Inc. for 186 stores in Louisiana and Mississippi ($580 million revenue) and Harco Inc. for 146 stores in Alabama ($258 million revenue), at a combined cost of about $340 million, adding over 300 locations.[3] By 1999, alongside organic openings of over 1,000 new stores in the prior three years, these acquisitions had propelled Rite Aid to operate approximately 3,900 drugstores nationwide, solidifying its position as the largest U.S. drugstore chain by store count at the time.[14][3] This growth strategy emphasized rapid market penetration but relied heavily on integration efficiencies to offset acquisition premiums and debt.[3]Operational challenges and restructuring (2000–2009)
Entering the 2000s, Rite Aid grappled with the fallout from accounting irregularities disclosed in 1999, which involved overstating income by massive amounts in every quarter from May 1997 to May 1999, leading to executive indictments and a sharp decline in stock value from over $50 per share.[15][16] In April 2000, the company announced a comprehensive financial restructuring plan that injected $640 million in fresh working capital and deferred debt payments to alleviate immediate liquidity pressures from its substantial obligations accumulated through prior expansions.[17] This was supplemented by securing $1 billion in credit facilities, enabling operational continuity amid creditor negotiations.[18] To further reduce its debt burden, Rite Aid sold its pharmacy benefits management subsidiary, PCS Health Systems—acquired for $1.5 billion just a year prior—to Advance Paradigm Inc. in July 2000 for approximately $1 billion, comprising $675 million in cash, a $200 million note, and $125 million in stock, thereby generating needed funds but at a loss.[19][20] These measures contributed to gradual debt reduction, dropping from $6.6 billion to about $3.9 billion by 2003, alongside store rationalization efforts that included closures to eliminate underperforming locations.[18] Mary F. Sammons, who joined as president and COO in 1999, assumed the CEO role in June 2003, shifting focus toward operational efficiency, cost controls, and pharmacy-centric growth, which yielded the company's first profits in fiscal 2003 after years of losses.[21][18] Persistent competitive pressures from rivals like CVS, Walgreens, and big-box retailers such as Walmart eroded front-end merchandise sales, while pharmacy margins faced headwinds from rising generic drug penetration and managed care reimbursement constraints.[22] In a bid for scale, Rite Aid acquired approximately 1,850 Brooks and Eckerd stores, plus six distribution centers, from Canada's Jean Coutu Group in June 2007 for around $3.5–4 billion in cash and stock, expanding its footprint to over 4,300 locations but substantially increasing its debt load and integration complexities, with the FTC requiring divestitures in overlapping markets to address antitrust concerns.[23][24][25] By fiscal 2008, these strains manifested in accelerated restructuring, with Rite Aid closing 200 stores—resulting in a net reduction of 158 outlets—and recording significant writedowns on goodwill and other assets, nearly doubling its fourth-quarter loss to over $1 billion.[26] The company planned additional closures of 67 stores by May 2009 to streamline operations further.[26] Looking ahead, Rite Aid projected a net loss for fiscal 2009 more than double analyst estimates, citing subdued prescription growth, weakening front-end sales, and broader economic pressures.[22]Adaptation to retail shifts (2010–2019)
During the early 2010s, Rite Aid launched its free wellness+ loyalty program in April 2010, offering members immediate benefits such as 24/7 pharmacist access via toll-free line and 10% discounts on Rite Aid brand products to foster customer retention amid rising competition from e-commerce and discount retailers.[27] By December 2012, the program had attracted 25 million active members, contributing to front-end sales growth through personalized rewards and health-focused incentives, including expansions like Wellness65+ in 2013 for senior discounts and consultations.[28] This initiative aimed to differentiate Rite Aid's physical stores by emphasizing pharmacy expertise and experiential health services over pure price competition.[29] To counter shifting consumer preferences toward convenience and wellness, Rite Aid invested in store remodels and format optimizations. In fiscal 2013, the company prioritized remodeling existing locations to improve layout efficiency and merchandise presentation, focusing on higher-margin categories like over-the-counter health products and private-label brands.[30] By 2015, Rite Aid expanded in-store health services, adding approximately 35 RediClinics for primary care access, targeting urban markets like Seattle to integrate retail pharmacy with basic medical consultations.[31] These changes sought to adapt to the decline in traditional front-end sales by prioritizing pharmacy adjacency and service-driven foot traffic, though same-store front-end growth remained modest at around 2.5% in select quarters.[32] Strategic acquisitions and merger pursuits marked Rite Aid's response to consolidation pressures and emerging threats like online pharmacy entrants. In February 2015, Rite Aid announced the $2 billion acquisition of independent pharmacy benefit manager EnvisionRx, completed in June 2015, to vertically integrate retail dispensing with benefits management and capture more prescriptions in a fragmented PBM landscape dominated by larger players.[33] [34] Concurrently, in October 2015, Rite Aid agreed to a $9 billion merger with Walgreens Boots Alliance (valued at $17.2 billion including debt) to achieve scale against CVS Health and potential disruptors, but the deal collapsed in June 2017 due to Federal Trade Commission antitrust concerns over reduced competition in pharmacy markets.[35] [36] Toward the decade's end, Rite Aid accelerated digital adaptations to bridge physical and online channels amid e-commerce growth. By 2019, the company enhanced its e-commerce platform with Adobe integrations for personalized marketing and same-day delivery pilots, aiming to leverage its 2,500 stores as fulfillment hubs while analyzing customer data for targeted wellness offers.[37] [38] These efforts, however, faced challenges from incumbents like Amazon's looming pharmacy expansion, underscoring Rite Aid's struggle to match the agility of pure digital competitors despite investments in omnichannel connectivity.[39]Bankruptcies, asset sales, and closure (2020–2025)
Rite Aid faced escalating financial pressures starting in 2020, driven by the COVID-19 pandemic's disruption to retail pharmacy operations, rising competition from larger chains like CVS and Walgreens, and e-commerce encroachment on front-end sales.[40] These factors contributed to consistent operating losses, with the company reporting a $750 million net loss on $24 billion in revenue for the fiscal year ended March 2023.[40] On October 15, 2023, Rite Aid Corporation initiated Chapter 11 bankruptcy proceedings in the U.S. Bankruptcy Court for the District of New Jersey to restructure approximately $4 billion in debt, optimize its store footprint, and secure liquidity amid ongoing opioid litigation settlements and declining profitability.[41] The initial restructuring plan involved closing around 154 underperforming stores immediately, with plans to shutter up to 800 locations overall, representing about one-quarter of its network at the time.[42] By August 30, 2024, the plan was consummated, eliminating roughly $2 billion in debt, obtaining $2.5 billion in exit financing, and transitioning Rite Aid to private ownership under "New Rite Aid, LLC," though $2.5 billion in debt persisted.[41][43] Persistent challenges, including weak front-of-store retail performance and insufficient cash flow to service remaining obligations, led to a second Chapter 11 filing on May 6, 2025 (Case No. 25-14861).[44][45] This proceeding focused on further debt restructuring and asset liquidation, with the company attributing difficulties to unprofitable store operations rather than pharmacy services.[44] Asset sales were pursued as part of the wind-down process, enabling orderly disposition of remaining properties and inventory.[46] The second bankruptcy culminated in the closure of all surviving stores, with operations ceasing nationwide by early October 2025, marking the end of Rite Aid's 63-year history as a retail pharmacy chain.[2][47] This full liquidation followed the rejection of potential going-concern bids and reflected insurmountable competitive and financial headwinds, leaving former locations for redevelopment or acquisition by competitors.[46]Business Model and Operations
Core retail and pharmacy format
Rite Aid's core format operates as a hybrid retail pharmacy chain, integrating a full-service pharmacy with front-end merchandise sales to provide both prescription services and consumer goods under one roof. Traditional stores typically range from 11,000 to 15,000 square feet, featuring linear aisles stocked with over-the-counter medications, health and beauty aids, cosmetics, snacks, beverages, seasonal items, and photo processing services, culminating in a pharmacy counter at the rear for prescription fulfillment. [48] This layout facilitates customer flow from impulse buys at the entrance to specialized pharmacy consultations, with many locations including drive-thru windows for prescription pickups to enhance convenience.[49] The pharmacy segment emphasizes clinical services, including dispensing generic and brand-name prescriptions, administering vaccinations such as flu shots and COVID-19 boosters, and offering medication therapy management for chronic conditions like diabetes and hypertension.[50] Rite Aid's model derives primary revenue from pharmacy sales, which historically accounted for over 70% of total receipts, supplemented by retail margins on non-prescription items averaging 30-40% gross profit.[51] In response to competitive pressures from e-commerce and big-box retailers, the company shifted toward pharmacist-led consultations, redesigning select stores to position pharmacists in open consultation areas rather than behind enclosed counters to foster direct patient engagement and expand services like health screenings.[52] [53] While Rite Aid piloted smaller-format stores around 3,000 square feet in underserved "pharmacy deserts" starting in 2022—prioritizing essentials like wellness products alongside core pharmacy functions—these represent adaptations rather than the foundational model, which relies on the larger hybrid structure for volume-driven economies in densely populated areas.[54] This format has sustained Rite Aid's operations across thousands of locations, though store closures exceeding 800 since its 2023 bankruptcy filing have reduced the footprint without altering the underlying retail-pharmacy integration.[55]Supply chain and inventory management
Rite Aid maintained a network of regional distribution centers to supply its stores with pharmaceuticals, over-the-counter products, and general merchandise, servicing approximately 1,000 locations from facilities such as those in Liverpool, New York; Perryman, Maryland; and Flatwoods, Kentucky.[56][57] The company utilized electronic data interchange (EDI) systems for purchase orders and vendor communications, issuing orders to DEA-licensed DCs with provisions for re-consignment upon delivery.[58] At the distribution center level, Rite Aid implemented Just-In-Time (JIT) inventory management to minimize holding costs and maximize workflow efficiency, requiring suppliers to adhere to precise routing, consolidation, and delivery schedules without early or late arrivals.[59] Store-level operations complemented this with perpetual inventory tracking via point-of-sale technology and periodic physical counts, supported by vendor-managed inventory (VMI) and scan-based trading programs for certain categories.[60] To improve end-to-end visibility and optimization, Rite Aid expanded its partnership with RELEX Solutions in January 2022, integrating supply chain planning with category management, space allocation, and inventory forecasting across stores and DCs.[61][62] Additional tools included Logicbroker for vendor onboarding and automation to expand product assortments without disrupting operations.[63] Supply chain challenges intensified amid competitive pressures and financial strain, contributing to persistent inventory shortages and bare shelves in operating stores by early 2025, even as closures reduced demand.[64] In its second Chapter 11 bankruptcy filing on May 5, 2025, Rite Aid cited underperforming retail operations as a core issue, leading to the shuttering of distribution centers in Aberdeen, Maryland, and Des Moines, Washington, on June 4, 2025, which affected nearly 500 workers and further streamlined a contracting footprint.[65][44] These measures reflected efforts to shed excess capacity but underscored broader inefficiencies in adapting to e-commerce shifts and wholesaler dependencies.[66]Customer loyalty programs
Rite Aid introduced its wellness+ loyalty program in April 2010, offering members a free rewards card that provided immediate benefits such as 24/7 toll-free pharmacist access and 10% discounts on Rite Aid brand products.[67][68] Members earned one point per dollar spent on eligible purchases, redeemable for coupons, pharmacy rewards like free screenings, and additional discounts, including 20% off select items after reaching certain point thresholds.[69] By the mid-2010s, the program had amassed over 44 million members, who accumulated points through pharmacy and front-store transactions.[70] In July 2013, Rite Aid launched wellness65+, an enhanced tier within wellness+ targeted at customers aged 65 and older, featuring perks like double points on prescriptions, exclusive senior discounts, and a designated savings day with 5x points on purchases.[71] This program emphasized health-focused incentives, including potential gym membership reimbursements and expanded pharmacist consultations, aiming to address the specific needs of an aging demographic.[72] From May 2015 to July 2018, Rite Aid participated in the Plenti coalition loyalty program operated by American Express, rebranding its offering as wellness+ with Plenti to enable cross-partner point earning and redemption at retailers like ExxonMobil, Macy's, and AT&T.[73][74] The integration allowed wellness+ members to link accounts for broader rewards utility, though Plenti's discontinuation in 2018—due to underwhelming adoption and partner exits—reverted Rite Aid to its proprietary system without reported long-term membership losses.[75][76] In February 2022, Rite Aid replaced wellness+ with Rite Aid Rewards, a digital-first program designed for easier engagement via app or website, where members earn 10 points per dollar on qualifying purchases (including 100 points per eligible prescription) and convert points to BonusCash at rates like 1,000 points for $5 off.[77] The revamp, informed by a 2021 partnership with data analytics firm dunnhumby, incorporated personalized challenges, members-only coupons, and exclusive pricing while retaining Rite Aid Rewards 65+ benefits like 5x points on the first Wednesday monthly for seniors.[78][79] This shift prioritized whole-health savings on vitamins, wellness products, and prescriptions, with points also accruing through app-based tasks, though specific membership figures post-launch remain undisclosed in public filings.[80]Technology and digital initiatives
Rite Aid developed the Rite Aid Pharmacy mobile application, launched prior to 2025, enabling users to manage prescriptions, refill orders, and earn rewards points convertible to BonusCash.[81] The app integrated with the company's website, riteaid.com, which supported online prescription transfers, product purchases, and delivery options as part of broader e-commerce capabilities.[82] These platforms aimed to enhance customer engagement through digital accessibility, including tracking of loyalty points and personalized challenges in a points-based rewards system.[83] In 2019, Rite Aid partnered with Adobe to implement Experience Cloud solutions under the "Path to the Future" initiative, incorporating Adobe Commerce Cloud for e-commerce upgrades, Advertising Cloud for targeted marketing, and Audience Manager for cross-channel customer segmentation.[84] This facilitated a unified shopping experience across online, mobile, and in-store channels using analytics and AI for customer insights.[39] In 2022, Rite Aid entered a multiyear agreement with Google Cloud to modernize operations, migrating tools like vaccine scheduling to Anthos, leveraging BigQuery for data analytics on finances and supply chain, and enhancing e-commerce search with Retail Search models.[85] These efforts targeted improved agility, prescription management, and data-driven decisions, including AI updates to the Elixir pharmacy benefits platform.[86] Rite Aid pursued pharmacy automation through a partnership with Parata Systems, deploying the Parata Max dispenser, which automated approximately 47% of prescriptions by the early 2010s, reducing manual dispensing to under 20% and yielding 11% labor savings within 90 days of implementation.[87] For supply chain efficiency, the company expanded use of Relex Solutions' AI-based ERP in 2022 for forecasting, replenishment, and space planning across over 2,400 stores, aiming for end-to-end visibility and automated back-end processes.[62] However, a 2023 Federal Trade Commission settlement prohibited Rite Aid from using AI facial recognition for surveillance after allegations of faulty deployments leading to false positives, highlighting risks in unchecked technology adoption.[88] These initiatives preceded Rite Aid's 2023 bankruptcy filing and subsequent 2025 liquidation, during which digital functionalities like the app were discontinued.[89]Acquisitions, Mergers, and Partnerships
Major acquisitions
Rite Aid pursued aggressive expansion through acquisitions in the 1990s, significantly increasing its store footprint from around 2,000 to over 4,000 locations by the decade's end. A pivotal deal was the March 1995 acquisition of Perry Drug Stores, Inc., for $132 million, which added 224 stores primarily in Michigan and surrounding states, marking Rite Aid's largest purchase to that point and strengthening its Midwest presence.[3] This was followed by the December 1996 completion of the $2.44 billion merger with Thrifty PayLess Holdings, Inc., incorporating approximately 1,000 West Coast stores and generating $4.4 billion in prior-year sales for the acquired entity, establishing Rite Aid as the largest drug chain on that coast.[90][3] In July 1997, Rite Aid agreed to acquire Harco, Inc., and K&B, Inc., finalizing the deal in September of that year for an undisclosed amount; the combined chains contributed about $900 million in annual sales and expanded operations into the Gulf Coast region, including Louisiana and Alabama.[91] These mid-1990s transactions, including Perry, Thrifty PayLess, Harco, and K&B, collectively doubled Rite Aid's size and diversified its geographic reach amid competitive pressures in the retail pharmacy sector.[1] The company's most substantial later acquisition occurred in June 2007, when Rite Aid completed the purchase of 1,854 Brooks and Eckerd stores, along with six distribution centers, from Jean Coutu Group for approximately $2.55 billion in cash and stock (valued at up to $3.5 billion including contingencies).[24][92] This deal, announced in August 2006, faced Federal Trade Commission scrutiny over antitrust concerns, requiring divestitures of overlapping stores, but ultimately boosted Rite Aid's Eastern U.S. dominance with enhanced pharmacy and front-end retail capabilities.[23] Post-acquisition integration involved $950 million in planned investments over five years for re-merchandising and system conversions.[93] These major deals underscored Rite Aid's strategy of growth via consolidation, though they also contributed to elevated debt levels amid later operational strains.Strategic alliances and collaborations
In January 1999, Rite Aid formed a strategic alliance with General Nutrition Centers (GNC), establishing approximately 1,500 GNC stores-within-stores across Rite Aid locations to expand access to vitamins, supplements, and nutritional products.[94][95] Under the agreement, the companies co-developed a private-label brand called PharmAssure for joint marketing of supplements.[95] This partnership, initially set for multiple years, was extended through at least 2022, supporting in-store and online sales integration.[96] In 2014, Rite Aid entered a distribution agreement with McKesson Corporation for generic pharmaceuticals, shifting from prior suppliers to optimize supply chain costs and inventory of low-cost drugs.[97] This collaboration aligned with industry trends toward consolidated wholesaler partnerships for generics, which comprised a growing share of prescriptions. Rite Aid partnered with dunnhumby in August 2021 to leverage customer data science for redesigning pricing, promotions, and loyalty programs, aiming to enhance personalization and retention amid competitive retail pressures.[78] In October 2022, a multi-year collaboration with Google Cloud was announced to deploy cloud-based technologies for improving pharmacy operations, including data analytics and customer experience enhancements.[98] Healthcare-focused alliances included a May 2022 agreement with Homeward to deliver primary care services at up to 700 Rite Aid stores in rural and underserved areas, targeting senior populations with onsite clinical support.[99] Similarly, in August 2022, Rite Aid collaborated with WellSpan Health in Central Pennsylvania to integrate data sharing for better care coordination and gap closure between pharmacy and medical services.[100] In May 2023, NielsenIQ (NIQ) launched a Connected Collaboration platform powered by Rite Aid's data assets and NIQ's analytics software to provide actionable consumer insights for merchandising and operations.[101] Recent efforts emphasized payment flexibility and safety: In October 2024, Rite Aid integrated Klarna's "Pay in 4" buy-now-pay-later option across all stores, enabling interest-free installment payments for eligible purchases.[102] November 2024 brought a partnership with ALTO to deploy AI-driven security measures in Philadelphia and Los Angeles stores, focusing on theft prevention and employee safety.[103] In January 2025, NationsBenefits aligned with Rite Aid for nationwide technology integration, allowing health plan members to redeem wellness benefits via prepaid cards at over 1,300 locations.[104] These initiatives reflect Rite Aid's strategy to bolster operational resilience through targeted, non-equity collaborations during financial restructuring.Financial Overview
Revenue trends and profitability
Rite Aid's revenues reached a peak of approximately $32.5 billion in fiscal year 2012 but began a sustained decline thereafter, reflecting broader challenges in the retail pharmacy sector including competition from discount chains and online retailers. By fiscal year 2023, ending March 4, 2023, annual revenues had fallen to $24.1 billion, a 2% decrease from $24.6 billion in fiscal 2022, driven by softer front-end sales and prescription volume pressures.[105] For fiscal 2024, the company forecasted revenues of $22.6 billion to $23.0 billion, signaling continued contraction amid store optimization efforts following its initial bankruptcy filing.[106] Profitability metrics have deteriorated in parallel, with Rite Aid reporting chronic operating losses and net income deficits. In fiscal 2023, net income stood at a $719 million loss, exacerbated by goodwill impairments, rising operational costs, and reimbursement rate squeezes from pharmacy benefit managers.[107] Adjusted EBITDA for the retail pharmacy segment hovered marginally positive at around 1-2% of revenues in early fiscal 2024 quarters, but overall margins eroded further due to inventory inefficiencies and declining prescription reimbursements, which fell from 19.6% gross margin in 2024 projections to anticipated 19.2% by 2029.[108] The company's second Chapter 11 filing on May 5, 2025, underscored acute profitability strains, as sales volumes and margins failed to recover post the 2023 restructuring, leading to liquidity shortfalls and accelerated store closures.[44] By October 2025, Rite Aid announced the closure of all remaining stores, effectively halting operations and rendering ongoing revenue generation negligible amid insurmountable debt and market headwinds.[109]| Fiscal Year | Revenue ($B) | Net Income ($M) |
|---|---|---|
| 2022 | 24.6 | N/A |
| 2023 | 24.1 | -719 |
| 2024 (proj) | 22.6-23.0 | N/A |