Grocery
Grocery Pharmacies Are Closing — and Reshaping the Center Store
Walgreens and Rite Aid closures are spilling into grocery, with Kroger and Albertsons shuttering in-store pharmacies.
By FTW Editorial·May 20, 2026·5 min read
In-store pharmacy is no longer a traffic driver — and grocers are reclaiming the square footage for fresh and prepared foods.
What happened
Kroger shut 60 in-store pharmacies in 2025; Albertsons closed roughly 40. Walmart and HEB are quietly downsizing pharmacy footprints. The square footage is being reallocated to prepared foods, expanded deli, and fresh seafood.
Why it matters
In-store pharmacy was a 1990s traffic-driving anchor. PBM pricing pressure and online competition (Amazon Pharmacy, Mark Cuban Cost Plus) have made it a margin drag, not a traffic anchor, in 2026.
Market impact
Expect 1,500-2,000 more US grocery pharmacy closures by end of 2027. The freed square footage will be the biggest format change in grocery this decade — supporting the prepared-foods boom and competition with c-stores.
Consumer insight
Most prescription fills are now subscription / mail-order. Shoppers don't make 'pharmacy trips' anymore; they pick up groceries and meds become a separate, digital errand.
Strategic takeaway
Grocers should treat pharmacy closure as a format opportunity, not a loss. Design the freed space as a destination prepared-foods anchor that competes with restaurants — that's where the trips are.
Get the next signal in your inbox.
Daily food industry intelligence — free.
More signals
Grocery·5 min read
Private Label Reinvents the Spice Aisle
Private label spice blends — once an afterthought — are systematically dismantling McCormick's category dominance with cuisine-specific, chef-developed SKUs.
May 20, 2026
Grocery·5 min read
Grocers Are Quietly Pulling Out Self-Checkout
After a decade of build-out, major grocers are removing self-checkout — and the unit economics never worked.
May 20, 2026
Grocery·5 min read
Refrigerated Pet Food Is Building Its Own Grocery Aisle
Fresh pet food crossed 10% category share and is now demanding dedicated refrigerated real estate.
May 20, 2026