Since it was founded in 1916, Rite Aid has been an essential part of the American landscape. The company operates over 2,000 stores across the country and employs over 200,000 people.
However, in February of this year, Rite Aid announced that it would be filing for Chapter 11 bankruptcy protection. While the company has yet to confirm whether or not it will be closing all of its stores, the future looks bleak for Rite Aid.
The company’s financial troubles can be traced back to the 2008 recession. Despite record revenue in 2007 and 2008, sales plummeted when people lost their jobs.
Rite Aid was also hurt by competition from Walgreens, which invested heavily in digital marketing and e-commerce.
However, Rite Aid’s biggest problem may be its outdated business model. The company relies heavily on traditional pharmacy sales, which have been declining in recent years due to the rise of online pharmacies and over-the-counter drugs.
In addition, Rite Aid has failed to keep up with the changing trends in the retail industry, such as the rise of Amazon and Target.
Although it is uncertain whether or not Rite Aid will be able to survive, the company has vowed to close only unprofitable stores. If this happens, it will be the largest U.
S. retailer to go out of business since the Great Depression.
Despite the company’s troubles, many employees will likely be able to find new jobs. However, the future of Rite Aid as a whole is uncertain.
