RITE Aid shoppers were left frustrated after the pharmacy giant confirmed it would eliminate a variety of services and offerings, including gift cards.
The move comes as the drugstore chain winds down operations in the wake of its bankruptcy filing.
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Rite Aid is a national drugstore chain with roughly 1,240 locations in the US, down from its peak of over 4,500 stores in the early 2000s.
The company has steadily struggled over the years in the highly competitive pharmacy landscape, facing declining sales and significant financial challenges.
The CVS and Walgreens rival’s troubles culminated in Rite Aid’s Chapter 11 bankruptcy filing on Monday, marking the second time in under two years that the company has filed.
Customers have already begun spotting the impacts of the second filing on Rite Aid’s operations.
Shopper Joe Grumet voiced his complaints on Facebook after being greeted with a disappointing message when visiting the company’s website on Friday morning.
He shared a screenshot of the page with the message that read:
“Rite Aid will no longer honor Rite Aid gift cards or accept any return or exchanges beginning June 5, 2025.”
Retail expert Dominick Miserandino – the CEO of Retail Tech Media Nexus – explained that, although unfortunate, Rite Aid’s bankruptcy filing and subsequent policy changes would impact a number of shoppers.
“Consumers need to be aware that even though gift cards feel like cash, they are still dependent on the company itself,” he told The U.S. Sun.
In addition to the impending elimination of gift cards, rewards, and exchanges, the pharmacy giant has already stopped accepting customers’ rewards points.
“Beginning, May 6, 2025, Rite Aid Rewards points will no longer be issued for qualifying purchases. All accrued points and BonusCash will expire per standard terms & conditions available at riteaid.com/rewards/terms-and-conditions,” reads the company’s website.
Grumet noted that the only service available when logging into his Rite Aid account was prescription management.
“Everything else is gone,” said the customer. “Rite Aid is done folks.”
The U.S. Sun reached out to Rite Aid for comment but did not immediately hear back.
How does bankruptcy work?
Bankruptcy is a specific legal process that helps companies eliminate debt they can’t repay.
The process allows businesses to start fresh and gain access to new credit.
Supervised by federal courts, bankruptcies allow a company to sell off its assets more easily to pay off creditors, according to Investopedia.
Chapter 11, a common process for companies, is used to restructure a business with the goal of remaining open – even if it means selling off most of the company’s properties.
Chapter 7, on the other hand, sells all of a company’s assets, putting it out of business.
Chapter 15, alternatively, allows for collaboration between American and foreign courts to conduct bankruptcy proceedings with “parties of interest involving more than one country,” per the United States Courts.
SHOPPER SADNESS
Many loyal Rite Aid customers on Facebook expressed their disappointment about the company’s downfall.
“Very sad to see,” said one shopper.
Another customer shared that Rite Aid was their go-to pharmacy and they were forced to switch to mail order yesterday.
They also noted that the situation “sucked” because they live in a rural area and the closest pharmacy is over an hour away.
“I’ll miss you, Rite Aid,” mourned a third shopper. “Rite Aid was a part of my childhood now it’s gone. I use to order from their online store just because.”
DRUG DOWNFALL
Rite Aid first filed for bankruptcy protection in 2023 for a handful of reasons.
Fierce competition, dropping sales, the rise of e-commerce, billions of dollars in debt, and lawsuits related to the company’s role in the opioid epidemic all weighed down on Rite Aid.
The struggling chain has also been met with trouble due to decreasing prescription reimbursement, high theft rates, and rising costs.
Rite Aid filed for Chapter 11 again this week, with CEO Matt Schroeder sharing that its complications stemmed from financial hardships “intensified by the rapidly evolving retail and healthcare landscapes.”
The pharmacy giant is currently working to host store closing sales and eventually shut down all or some of its 1,240 locations across 15 US states.
“As we move forward, our key priorities are ensuring uninterrupted pharmacy services for our customers and preserving jobs for as many associates as possible,” said Schroeder.
Shoppers will continue to be able to access pharmacy services and products in stores and online, including prescriptions and immunizations, Rite Aid said in a news release.
The drugstore chain also noted that it is working to transfer customer prescriptions to other pharmacies.
Rite Aid is not the only company struggling – around one in three retail pharmacies across the country has closed since 2010.
CVS is also on the list of major pharmacies closing spots, forced to shut down 23 in the same state as a “bad policy” threatens millions of prescriptions.
Walgreens is also facing headwinds, with 500 locations slated to shutter.