US Lost Over 3000 Pharmacies From 2022 to 2024, Mostly Chains

From 2022 to 2024, 7240 US community pharmacies closed and only 4178 opened, a net loss of 3062 locations, according to a new analysis in the Journal of the American Pharmacists Association (JAPhA).¹ Chain pharmacies lost 2680 locations, and at a much higher rate than independent locations, which lost 382 stores.

“As reimbursement for dispensing prescriptions has diminished resulting in community pharmacy business closures, concerns have been raised about declining pharmacy access,” wrote authors of the study. “Recent studies have highlighted the increasing trend of pharmacy closures, disproportionately affecting independent pharmacies and communities with historically limited health care access.”

The JAPhA study reveals that closed pharmacies operated for an average of 18 years and 8.8 months before shutting down, with chain stores averaging 22 years and 1.5 months and independent stores at 15 years and 8.8 months. Furthermore, more than half of all closures during this 3-year period occurred in designated health professional shortage areas, while nearly 3000 closures occurred in medically underserved areas.¹

READ MORE: American Pharmacists Month: PBM Reform, Provider Status Key in Stopping Pharmacy Deserts

External financial pressures such as declining dispensing reimbursement rates, direct and indirect remuneration fee rule changes under Medicare Part D, and spread pricing practices by pharmacy benefit managers (PBMs) have made the traditional retail business model increasingly unsustainable.

Shifts in Chain Footprints and Corporate Restructuring

Major retail chains have been recalibrating their brick-and-mortar footprints in response to evolving market pressures. Walgreens announced plans to close fewer than 100 locations across at least a dozen states in 2026 as part of its store optimization strategy, a scaled-back figure compared with earlier internal projections of roughly 700 store closures.^2-4

Meanwhile, CVS Health plans to separate its nearly 9000 retail pharmacies and mail order business into an independent publicly traded company by the first half of 2028 while retaining its Caremark PBM and specialty drug operations. This proposed corporate split highlights growing divergence between low-margin retail dispensing and high-margin specialty management, leaving community pharmacists to navigate uncertain reimbursement contracts and copay structures.⁵

The collapse of Rite Aid underscores the severity of chain contractions, as the company shuttered its remaining 89 stores after filing for bankruptcy for the second time. Following bankruptcy proceedings, Rite Aid sold prescription files from over 1000 locations to major competitors like CVS and Walgreens.³

A study on bulk prescription transfers following Rite Aid closures found that 96.4% of transferred patient files were acquired by rival chains, with 68.7% going directly to PBM-affiliated entities. Over half of these bulk transfers forced patients to drive an additional 5 to 15 minutes for medication pick-ups, creating disproportionate travel burdens in low-density neighborhoods and minority communities.⁶

Independent Pharmacy Churn and Retail Business Dynamics

Despite chain closures accounting for the vast majority of net location losses, independent pharmacies face a distinct pattern of rapid business turnover. An analysis of long-term pharmacy dynamics from 2010 through 2023 demonstrated an annual community pharmacy churn rate of 6.2%, with independent pharmacies experiencing an annual churn rate of 10.9% compared with just 3.6% for chains.^1,2

Independent pharmacies frequently open and close within their first 5 years of operation, reflecting lower entry barriers alongside heightened financial vulnerability.²

Additionally, the JAPhA study identified 807 instances of ownership changes between 2022 and 2024, of which 633 occurred with consecutive-day transitions that preserved uninterrupted patient care.¹

Impact on Disadvantaged Communities and Policy Pathways

The accelerating rate of pharmacy closures threatens to expand pharmacy deserts in socioeconomically vulnerable neighborhoods. Earlier research examining pharmacy trends between 2010 and 2021 found that nearly 30% of all retail pharmacies closed, with stores in predominantly Black and Latinx neighborhoods facing significantly higher closure risks than those in White areas.^1,7

Independent pharmacies in these communities remain particularly susceptible to restrictive preferred PBM networks and inadequate public insurance reimbursement. Researchers emphasize that stabilizing community pharmacy access requires comprehensive federal and state policy reforms, including statutory PBM transparency, fair dispensing fees, and expanded Medicare reimbursement for clinical non-dispensing services provided by pharmacists.^1,5,7

“Our work highlights the length of time pharmacies operated prior to closure and describes the geographic regions in which pharmacies closed in proximity to areas already lacking access to medical care and health care professionals,” concluded authors of the JAPhA study.¹ “Additional work describing US pharmacy closures and openings will further highlight the importance of community pharmacy access to the US health care system.”

READ MORE: Total Pharmacy Resource Center

REFERENCES

1. Blankenship B, Murphy EM, Rodis J, et al. Descriptive analysis of pharmacy closures and openings in the United States from 2022–2024. JAPhA. October 1, 2026:103552. doi:10.1016/j.japh.2026.103552

2. Mattingly TJ, Sahu M, Anderson KE. Community pharmacy turnover and context of openings and closings by ownership type. JAMA Health Forum. 2025;6(8):e251988. doi:10.1001/jamahealthforum.2025.1988

3. Bacon A. Rite Aid closes all remaining stores after 63 years in business. ABC 30. October 6, 2025. Accessed November 5, 2026. https://abc30.com/post/rite-aid-closes-remaining-stores-more-60-years-business/17937848/

4. Sedovic D. Walgreens is closing locations in 2026, but not as many as planned, reports say. WMTV 15. August 4, 2026. Accessed November 5, 2026. https://www.wmtv15news.com/2026/08/04/walgreens-is-closing-locations-2026-not-many-planned-reports-say/

5. Lee D, Morgan L. CVS plans to split off its retail pharmacies, keeping specialty operations. Drug Topics. November 4, 2026. Accessed November 5, 2026. https://www.drugtopics.com/view/cvs-plans-to-split-off-its-retail-pharmacies-keeping-specialty-operations

6. Veeramachaneni S, Ramachandran S, Barnard M. Bulk prescription transfers and access after chain pharmacy closures. JAMA Health Forum. 2026;7(7):e262070. doi:10.1001/jamahealthforum.2026.2070

7. Guadamuz J, Kanter GP, Qato DM, et al. More US pharmacies closed than opened in 2018–21; independent pharmacies, those in Black, Latinx communities most at risk. USC. December 3, 2024. Accessed November 5, 2026. https://schaeffer.usc.edu/research/more-us-pharmacies-closed-than-opened-in-2018-21-independent-pharmacies-those-in-black-latinx-communities-most-at-risk/