Rite Aid Abruptly Announces Two NJ Store Closures Amid Bankruptcy

Rite Aid has begun shuttering locations across its retail network this week, including two New Jersey stores, contradicting earlier promises to maintain operations during bankruptcy proceedings. The nationwide pharmacy chain, which entered its second Chapter 11 bankruptcy on Monday, had initially assured customers that all locations would remain open while it works to sell its assets, according to Patch.

The reversal comes as court documents reveal plans to dramatically reduce the company’s retail footprint, with nearly all of Rite Aid’s 1,240 stores possibly up for sale in the coming months.

Two New Jersey Locations First to Face Closure

The first New Jersey Rite Aid locations slated for closure are in Neptune (75 South Main Street) and Sicklerville (403 Sicklerville Road). These closures represent only the beginning of what could become a more extensive reduction in the company’s presence across the state, where it currently operates 60 locations.

For local residents who rely on these pharmacies, the sudden announcement raises concerns about prescription access. Rite Aid has stated it will work to facilitate a smooth transfer of customer prescriptions to other nearby pharmacies, but the transition may still cause disruption for its customer base, which includes approximately eight million pharmacy customers nationwide.

The Neptune and Sicklerville locations join 45 other stores across the country in this initial closure wave, marking a significant strategic shift just days into the bankruptcy process.

Massive Retail Property Sale Underway

A flyer from A&G Real Estate Partners indicates that Rite Aid is looking to offload substantially all of its retail locations as part of the bankruptcy proceedings. The listing reportedly includes 1,187 retail leases and 50 fee-owned properties spread across 15 states.

This dramatic move follows previous store closures implemented last year when Rite Aid first began its restructuring efforts. Industry analysts note that this represents one of the largest retail property sales in recent memory, creating potential opportunities for competing pharmacy chains and other retailers to expand their footprints.

Real estate experts suggest the massive property offering could reshape the retail pharmacy landscape in many communities, potentially leaving gaps in service for some neighborhoods while opening doors for new businesses in others.

Immediate Customer Impact and Policy Changes

While Rite Aid has confirmed that pharmacy services and products will remain available both in stores and online during the bankruptcy process, several customer programs have been immediately affected. The company has ceased issuing Rite Aid Rewards points, and existing points and bonus cash will expire according to the existing terms and conditions.

Additionally, beginning June 5, Rite Aid will no longer honor gift cards and will stop accepting returns or exchanges of any kind. These policy changes represent significant departures from standard retail practices and signal the severity of the company’s financial situation.

Customers with outstanding prescriptions, rewards points, or gift cards are advised to address these matters quickly before further changes take effect.

Industry-Wide Struggles Continue

Rite Aid’s difficulties reflect broader challenges facing traditional pharmacy retailers. As the nation’s third-largest pharmacy chain behind CVS and Walgreens, Rite Aid’s bankruptcy filing follows similar financial struggles experienced by its larger competitors, both of which have closed hundreds of locations in recent years.

The chain has dramatically reduced its footprint from approximately 2,000 stores in 2023 to roughly 1,240 locations today. This contraction highlights the intense pressure on brick-and-mortar pharmacies facing competition from mail-order prescription services, online retailers, and discount chains expanding their pharmaceutical offerings.

Industry analysts point to several factors driving this consolidation, including reduced insurance reimbursements, increasing pressure from pharmacy benefit managers, and changing consumer preferences accelerated by the pandemic.