The pharmacy industry has been diminishing in the United States in recent years due to consolidation. This phenomenon has been accelerated by the news that Rite Aid, one of the largest drugstore chains in the country, has filed for chapter 11 bankruptcy.
The filing marks the end of a series of struggles that the company has had in the past few years. After its merger with fellow drugstore chain Albertsons last year, its share of the market had declined and it was no longer able to compete with larger chains like Walgreens and CVS. This move will enable Rite Aid to continue operations while restructuring its debt and attempting to become a stronger competitor in the crowded market.
Unfortunately, while Rite Aid may survive this chapter 11 bankruptcy, the filing is a sign of where the drugstore industry is headed. As pharmacies consolidate and fewer independent pharmacies remain, customers have fewer options when it comes to finding the medications they need. This means fewer of the selection and variety that customers have become used to, as well as a decrease in competition and thus increases in prices.
In addition to this loss of competition, the dwindling number of pharmacies could also have a negative effect on the quality of patient care. As the number of pharmacists employed in drugstores becomes scarcer, they become more responsible for a larger number of patients and thus can no longer provide the same level of personal attention and advice.
The filing of chapter 11 by Rite Aid is a sad sign of what’s to come for the drugstore industry, and it is a reminder of how swiftly changes in the business landscape can occur. As consolidation continues, customers will have fewer options when it comes to their medications. It is also uncertain how the industry will fare in the future, as pharmacies go digital and customers become more used to buying their medicines online.
For now, however, it looks like the Rite Aid bankruptcy is only the beginning of a larger transformation in the drugstore industry. It remains to be seen how this situation will impact customers in the long run, but it is clear that pharmacies will keep dwindling and competition will become more scarce.