New York is losing businesses left and right as the economic downturn (are we allowed to call it a recession yet?) continues to take its toll.
First there were the factories (and lots of them) closing…
New York has also lost its fair share of grocery stores as the year has worn on…
And the Trump administration has poured gasoline on the fire by pulling $30.2 million in funding for New York farms.
Unfortunately, the pain is set to continue – Rite Aid is closing a slew of pharmacies across New York as it sinks deeper into bankruptcy and works to close or sell every pharmacy it has left.
Some recent losses include Rite Aids in:
- Carmel
- NYC
- Buffalo (two of them)
- Tonawanda
- Southampton
- Poukeepsie
- Mahopac
- Seneca
- Mayville
- Cheektowaga
- Eastport
- Ransomville
And of course, that’s likely just a partial list, as the chain which once boasted thousands of locations is now down to just a handful as it finishes winding up the business.
The logic here is cold and inescapable: Pharmacy chains across the country are downsizing as they face renewed competition from grocery stores, mail-order pharmacies, and of course Amazon.
(Not to mention lower insurance reimbursement rates that are weighing on what little margins they have.)
Plus, the broader food industry is in a downturn as consumers cut spending in expectation of a recession – and inflation and higher food inputs compress margins.
If you’re operating at the nexus of both of these trends – that’s pharmacies – then you’re getting hit both ways.
That’s a tough spot to be in, so it’s not shocking that Rite Aid (which has struggled for years) is exiting and that even more successful chains like Walgreens are trimming stores.
But that doesn’t change the fact that this is a real blow to the local communities, who depended on these stores for groceries, medicine, and jobs.
My heart goes out to the impacted employees – who showed up every day to work, did their jobs, and are now stuck without one.
If you’re so inclined, please leave a note of encouragement or advice in the comments section for people struggling to figure out what the next career step might be.
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