Sponsored By

Raley’s to close 27 pharmacies

Prescription files sold to Walgreens, CVS, Rite Aid

Russell Redman

October 28, 2019

2 Min Read
Raleys pharmacy department - Copy.jpg
Raley's

Raley’s plans to close more than a quarter of its in-store pharmacies, citing “challenges in the pharmacy space.”

The West Sacramento, Calif.-based grocer this weekend began closing the first of 27 pharmacies at Raley’s, Bel Air Market, Nob Hill Foods, Sak’N Save and Food Source stores and expects to complete the process by Nov. 5. Prescription files for those locations have been sold to Walgreens, CVS Pharmacy and Rite Aid and will be transferred to the drug chains’ nearby stores.

Raley’s said it will continue to operate 69 pharmacies in California and Nevada.

“As a normal course of business, Raley’s assesses the individual performance of their stores and pharmacies. Given the challenges in the pharmacy space, Raley’s selected 27 pharmacy locations for closure based on relevance and profitability,” Raley’s said in a statement. “This strategic business decision positions the company for continued long-term growth and ongoing success.”

Pharmacies being closed include 18 in Raley’s stores (16 in California, two in Nevada), four in Bel Air Markets (California), two in Nob Hill Foods (California), two in Food Source stores (one in California, one in Nevada) and one in a Sak’N Save store (Nevada).

Four pharmacies have been shut thus far, including three Raley’s pharmacies (Oakley, Placerville and Suisun City, Calif.) and one Bel Air Market pharmacy (Roseville, Calif.). Another 18 are scheduled to be closed this week.

Related:Hy-Vee urges reform on pharmacy remuneration fees

Patients at the pharmacies being closed will receive a notice identifying the specific transfer location and timing, Raley’s said. The company added that it’s providing transition support for impacted pharmacy staff at each location, including pay and benefits for a period of time and future employment assistance, either through new roles at Raley’s or elsewhere.

In recent years, changing economics in the prescription drug industry have made it tougher for all retail pharmacy operators to compete, but particularly smaller players.

Rising drug prices, shrinking profits on generic drugs (now nearly nine out of every 10 prescriptions), the need for scale to lower drug procurement costs and booming growth in expensive specialty pharmaceuticals (which can require added services and special handling) have fueled consolidation among drug chains, drug distributors and pharmaceutical manufacturers, putting more competitive pressure on small pharmacy retailers. Cuts in Medicare and Medicaid reimbursements and costs like direct and indirect remuneration (DIR) fees also have squeezed margins, especially impacting small pharmacy operators.

Related:Supermarket pharmacies lead in customer satisfaction

Read more about:

Rite Aid

About the Author

Russell Redman

Senior Editor
Supermarket News

Russell Redman has served as senior editor at Supermarket News since April 2018, his second tour with the publication. In his current role, he handles daily news coverage for the SN website and contributes news and features for the print magazine, as well as participates in special projects, podcasts and webinars and attends industry events. Russ joined SN from Racher Press Inc.’s Chain Drug Review and Mass Market Retailers magazines, where he served as desk/online editor for more than nine years, covering the food/drug/mass retail sector. 

Russell Redman’s more than 30 years of experience in journalism span a range of editorial manager, editor, reporter/writer and digital roles at a variety of publications and websites covering a breadth of industries, including retailing, pharmacy/health care, IT, digital home, financial technology, financial services, real estate/commercial property, pro audio/video and film. He started his career in 1989 as a local news reporter and editor, covering community news and politics in Long Island, N.Y. His background also includes an earlier stint at Supermarket News as center store editor and then financial editor in the mid-1990s. Russ holds a B.A. in journalism (minor in political science) from Hofstra University, where he also earned a certificate in digital/social media marketing in November 2016.

Russell Redman’s experience:

Supermarket News - Informa
Senior Editor 
April 2018 - present

Chain Drug Review/Mass Market Retailers - Racher Press
Desk/Online Editor 
Sept. 2008 - March 2018

CRN magazine - CMP Media
Managing Editor
May 2000 - June 2007

Bank Systems & Technology - Miller Freeman
Executive Editor/Managing Editor
Dec. 1996 - May 2000

Supermarket News - Fairchild Publications
Financial Editor/Associate Editor
April 1995 - Dec. 1996 

Shopping Centers Today Magazine - ICSC 
Desk Editor/Assistant Editor
Dec. 1992 - April 1995

Testa Communications
Assistant Editor/Contributing Editor (Music & Sound Retailer, Post, Producer, Sound & Communications and DJ Times magazines)
Jan. 1991 - Dec. 1992 

American Banker/Bond Buyer
Copy Editor
Oct. 1990 - Jan. 1991 

This Week newspaper - Chanry Communications
Reporter/Editor
May 1989 - July 1990

Stay up-to-date on the latest food retail news and trends
Subscribe to free eNewsletters from Supermarket News

You May Also Like