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Wakefern to shut 62 ShopRite pharmacies

Prescription files to transfer to CVS Pharmacy locations

Russell Redman

January 26, 2021

3 Min Read
ShopRite_pharmacy-Garafalo_Markets.png
ShopRite will have 147 pharmacies across its approximately 280 stores after the affected pharmacies are closed.ShopRite

Citing underperformance, Wakefern Food Corp. is closing 30% of the ShopRite pharmacy locations across its market areas.

Keasbey, N.J.-based Wakefern on Tuesday confirmed published reports that it plans to shut 62 of its 209 ShopRite pharmacies over the next month and sell their prescription files to CVS Health. The retail food cooperative declined to disclose the affected locations and the sale price for the pharmacy patient files.

“The pharmacy industry is highly competitive, and we were unable to sustain sufficient sales despite our marketing efforts, which led to the difficult decision to close these store pharmacies,” Wakefern spokeswoman Karen O'Shea said in an email statement. “ShopRite remains committed to delivering a wide assortment of healthy, affordable foods and wholesome meal solutions with the exceptional ShopRite value and service our customers expect.”

All support staff from the ShopRite pharmacies slated to close will be offered positions at other ShopRite stores, according to Wakefern. Pharmacists and pharmacy technicians from the affected locations will have an opportunity to interview with CVS.

“CVS is a trusted leader in the pharmacy business, and we are working together to make this a seamless transition for our pharmacy customers and associates,” O'Shea stated.

Related:ShopRites in New Jersey ready to go with COVID-19 vaccine

Prescription files at the pharmacies being closed will automatically transfer to a nearby CVS Pharmacy location, Wakefern reported, adding that impacted customers will be notified and signs with further information will be posted at store pharmacy counters.

“The majority of our ShopRite pharmacies — 147 pharmacies — will remain open and continue to serve our pharmacy customers,” O'Shea said in the email.

ShopRite’s COVID-19 vaccination program, announced last month, won’t be affected by the planned pharmacy closings, according to the company. So far, O'Shea said, the supermarket chain’s pharmacies have provided coronavirus vaccines to more than 30,000 people.

Overall, the ShopRite banner includes about 280 independently owned and operated supermarkets in New Jersey, New York, Pennsylvania, Connecticut, Delaware and Maryland.

In recent years, changing economics in the prescription drug industry have squeezed retail pharmacy operators, making it especially difficult for smaller players to complete.

Rising drug prices, shrinking profits on generic drugs (now about 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. Cuts in Medicare and Medicaid reimbursements and costs like direct and indirect remuneration (DIR) fees also have sliced margins, with small pharmacy operators in particular feeling the impact.

Related:Amazon enters prescription drug market with Amazon Pharmacy

For example, last March, St. Louis-based grocer Schnuck Markets sold its retail and specialty pharmacy businesses to CVS. With the deal, CVS took over operation of 99 of the Schnucks in-store pharmacies under the CVS Pharmacy brand, and prescription files of 11 Schnucks pharmacies were transferred to other CVS locations.

In October 2019, Western grocer Raley’s announced it was closing 27 of its 96 pharmacies because of “challenges in the pharmacy space.” Prescription files for those locations were sold to Walgreens, CVS and Rite Aid. And just over a year earlier, Stater Bros. shut down its 22 SuperRx Pharmacies and sold their prescription records and inventory to CVS.

Read more about:

CVS HealthRite 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

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