Rite Aid’s final chapter: What suppliers should do now to grow share

The disappearance of Rite Aid from America’s retail landscape marks the end of an era for one of the nation’s largest drugstore chains.

For suppliers across OTC, Beauty, Household, and Food and Beverage, the transition raises two pressing questions: Where is Rite Aid’s sales volume going, and what should suppliers do next to protect and grow share? In this article, our Omnichannel Healthcare team highlights the opportunities, flags the watchouts, and lays out clear strategies to move forward.

A quick recap

Rite Aid filed for Chapter 11 in October 2023 to reduce debt and close underperforming stores. It raised new financing and sold its Elixir PBM in early 2024, but lawsuits, inventory shortages, and rising costs persisted. By May 2025, it was back in bankruptcy, this time moving directly to sell assets. CVS acquired prescription files from 625 stores across 15 states and took over 64 locations in Idaho, Oregon, and Washington. Walgreens, Albertsons, Kroger, and Giant Eagle also purchased pharmacy assets through the court process.

Where we are now

Court proceedings this fall remain focused on disclosure and plan steps. While objections from the U.S. Trustee may slow approval, they don’t halt local file transfers or ongoing closures. By the first week of October, all Rite Aid stores were shuttered.

For suppliers, the takeaway is clear: demand isn’t vanishing, it’s moving. Rite aid shoppers continue to shift to other retailers, with Walmart seeing a 9% pt. increase in Rite aid shoppers visiting Walmart, CVS +4.9% pts., and Walgreens seeing a 3.6% pt. increase. At the same time, pharmacy deserts are also expanding, with more than 1,300 Rite Aid pharmacies alone having closed since 2021. This has direct implications for OTC demand and fill-in baskets where Rite Aid once filled the gap.

How the volume is reshaping the channel

Here’s the practical lens: Prescription transfers are redefining weekly shopping patterns, and those trips are carrying the rest of the basket, from core OTC and everyday beauty to household needs and quick snacks. We’ve taken a close look below at where the business is shifting by channel, and how suppliers can capture that demand. One rule applies across the board, though. Expect short-term scan noise near liquidation zones. Deep markdowns around closing stores can distort comps for weeks. Use matched-market or two-year baselines to evaluate performance and avoid overreacting to temporary dips.

National drug chains
CVS is absorbing the largest share of prescription files, including the 64 converted stores in the Pacific Northwest. Walgreens continues to pick up files in targeted markets, strengthening its network where it makes sense.
MPG’s take: Manufacturer’s should look to help CVS and Walgreen’s connect RX shoppers with Front of store sales. Drive conversion with strong value offerings, targeted engagement, and cross category optimization. With one fewer national drug account, CVS and Walgreens hold more leverage and will gain valuable RX traffic.
Regional grocers
Albertsons and Kroger divisions have actively promoted transfers, while Giant Eagle has reopened pharmacies in western Pennsylvania and Ohio tied to former Rite Aid locations. These banners are turning scripts into pharmacy-anchored baskets that carry OTC and small beauty.
MPG’s take: Treat these grocers as priority accounts through flu and allergy seasons. Ask for pharmacy-adjacent endcaps and targeted loyalty offers tied to refill reminders. Practical, seasonal placement at the counter will drive more value than broad resets.
Independents
In towns without a nearby chain, local pharmacies are picking up patients and becoming anchors for OTC and beauty basics. Results vary, but in pharmacy deserts independents are essential.
MPG’s take: Keep execution simple. Offer pre-packed seasonal kits, single-page planograms, and replenishment through wholesalers. Track reorders to identify high performers and support them with quick-turn seasonal programs.
eCommerce and Delivery
Delivery-first models are filling gaps. Amazon Pharmacy’s same-day expansion and RxPass offer a compelling option where store access is limited. The total share moving online in Rite Aid-heavy ZIPs is still unquantified, but adoption is climbing.
MPG’s take: The digital shelf is baseline. Audit top SKUs for accurate content and consistent availability. Direct retail media toward ZIPs with recent closures and shoppers flagged as new-to-pharmacy transfers. Expect higher subscribe-and-save and quick-add behavior as same-day coverage expands.
Mass, Dollar, and Convenience
Fill-in trips for everyday categories are consolidating into mass, dollar, and c-store formats. Walmart and Dollar General are already showing gains across paper, laundry, snacks, and personal care.
MPG’s take: For Dollar, build clear multi-price ladders and right-sized packs. In both value and mass, prioritize placement that supports quick missions — clip strips and compact endcaps near OTC outperform broad displays. In Mass, lead with efficacy and price-value stories that resonate with trade-down shoppers, and highlight eligibility for supplemental health benefits where relevant. In Convenience, orient to immediate consumption and quick-fix missions; prioritize cold-vault adjacency, front-counter impulse, and small-footprint shippers at the front end. Keep your top sellers in smaller packs priced from $1 to $5, focus on fast replenishment, and time promotions to morning commute and late afternoon.

90-day action plan

Map the migration
Use buyer disclosures and local announcements to identify where each closed ZIP’s prescriptions landed. Rank the top quartile of ZIPs for growth potential and prioritize coverage and inventory there.
Reset the Pacific Northwest
For OTC and Beauty, the 64 CVS conversions are the on-ramp. Help CVS accelerate the opening of these high performing stores with consumer messaging and product availability.
Leverage grocer pharmacy counters
In Albertsons, Kroger, and Giant Eagle markets, request pharmacy-adjacent endcaps that pair top OTC SKUs with a seasonal cross-sell. Connect promotions to refill cycles and track redemption to prove the basket lift.
Win in value formats
Design packs that fit multi-price structures and support quick trips. Use clip strips and endcaps near OTC aisles to capture incremental baskets. Align case counts to trips now shifting into Dollar General and other value retailers.
Protect Beauty during habit resets
Keep top items in stock, cut the tail quickly, and use minis and curated sets to re-seed trial. In mass, lean into ingredient credibility and price points that hold trade-down share.
Match retail media to migration
Target new-to-pharmacy audiences and ZIPs with reduced access. Pair script categories with complementary OTC placements. Push subscribe-and-save and quick-add options where same-day delivery is available.
Forecast with discipline
Shift forecasts to absorbing DCs and plan for short-term disruption as liquidation clears. Diversify credit exposure across mass, grocery, and dollar. Tie incremental trade funds to proven space and velocity.

What to watch next

Expect continued court activity on disclosure and plan steps through the fall. Watch the Pacific Northwest and western Pennsylvania closely; these will be bellwether markets for how share ultimately settles.

Watchouts

Pharmacy deserts

Some communities will lose access despite file transfers. That suppresses OTC and front-store trips until new habits form. Don’t over-ship into these ZIPs; stay agile and ready to replenish where independents step in.

Margin pressure from concentration

With fewer national buyers, expect sharper demands on funding and terms. Protect pack architecture and tie incremental spend to verified performance.

Short-term volatility

Liquidation sales will skew comps for weeks. Use two-year baselines to measure real performance.

A faster-moving Walgreens

Private ownership could accelerate resets and assortment changes. Expect a tighter mix and more own-brand focus. Have a clear coexistence story ready, even if timelines are still undisclosed.

MPG can help

Remember, this is not demand destruction; it’s demand rerouted. The suppliers who win will map where trips are landing, secure presence at the pharmacy counter, support independents with simple programs, and optimize the digital shelf for shoppers shifting online. Do that well, and you’ll not only protect your base but also capture growth as Rite Aid’s chapter closes.

For tailored insights to drive your business in this fast-evolving channel, reach out to Brian Granger, Sr. Vice President, Omnichannel Healthcare, at brian.granger@mpgllc.com. MPG’s team brings deep retailer experience, strong merchant relationships, and a shopper-first mindset to drive growth.