Abstract
The RetailStat webinar on March 31, 2025, covered Walgreens Boots Alliance and Rite Aid, focusing on the U.S. retail pharmaceutical market. The U.S. retail pharmaceutical market grew by 8.8% in 2024, reaching $348 billion, driven by higher volume that offset price deflation. Despite overall market growth, retail margins are being pressured by reduced pharmacy reimbursements, soft front-end sales, labor costs, and growing online competition.
Walgreens has faced challenges, including a 52% fall in EBITDA since FY19 and strategic reviews leading to store closures. In March 2025, Walgreens agreed to be acquired by Sycamore Partners in a deal valued up to $23.7 billion.
Rite Aid emerged from bankruptcy on August 30, 2024, eliminating approximately $2 billion in debt and closing 800 stores. However, it continues to face operational struggles and is in talks to bolster liquidity.
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Courtesy of retailstat.com