Shifting Tides in Retail Pharmacy: What Layoffs and Closures Mean for Employees and Employers

It’s been a wild time in the pharmacy world lately, hasn’t it?

Waves of pharmacy layoffs and store closures have rippled across the industry. Large retail chains like CVS, Rite Aid, and Walgreens are scaling back operations. Many professionals are even leaving the industry altogether.

For the employees who remain, there’s uncertainty about their roles and futures, while pharmacy employers are wondering how to best handle these transitions.

But in the face of these shifts, we believe there’s real opportunity for growth, reinvention, and a stronger pharmacy landscape.

So, let’s take a look at the current state of retail pharmacy and discuss steps both employees and employers can take with the industry in flux.

The Big Picture: Why Retail Pharmacies Are Closing or Downsizing

The retail pharmacy industry is experiencing significant shifts, with several key drivers behind these closures and layoffs. Here’s what we know.

Industry Pressures

Big retail chains are facing high operational costs, fierce competition, and shifting consumer preferences for mail-order and digital health services.

Traditional pharmacy models are being challenged, and companies are rethinking their approach to stay viable.

Pandemic-Era Workforce Shifts and Sustained High Demand

During COVID-19, demand for healthcare workers surged, increasing the scope of practice for many that remained on the front lines, creating a high-pressure environment for pharmacists and technicians. The surge continues today, with a 144% increase in demand for pharmacy technicians alone.

As workloads intensified, many pharmacy employees took remote roles that utilized their training and licenses, or left the healthcare industry as a whole — citing burnout, differing personal beliefs, or taking higher paying roles in other industries.

Today, staffing gaps persist and stores are closing in response, leaving a high volume of patients with fewer resources.

Cautionary Lessons from Other Sectors

While pharmacies didn’t experience the kind of rapid over hiring seen in other sectors (like tech for example), recent layoffs highlight the risks of scaling too quickly without sustainable planning.

For pharmacy employers, the lesson is clear: prioritize steady, strategic growth to avoid similar challenges down the line.

Pharmacy Employee Perspective: Navigating Uncertainty and Overwhelm

If you’re among the pharmacy employees who remain, you’re well aware that store closures and downsizing mean heavier workloads, more demanding environments, and fewer resources to go around.

The added strain can impact both your physical and mental health, and even limits career advancement prospects.

Increased Workload

With fewer colleagues and more patients to serve, employees in remaining stores often face long shifts with limited breaks.

You likely find yourself handling additional responsibilities without adequate support, which can quickly lead to exhaustion and increase the risk of errors, making it challenging to provide the highest standard of patient care.

Questionable Stability

As retail chains pull back, employees may find fewer opportunities for stability. If you previously considered retail pharmacy a stable career option, you may feel it’s time to reassess and explore alternatives in more stable or supportive environments that offer growth and balance.

Pharmacy Employer Perspective: Finding Opportunity in the Changing Talent Pool

For pharmacy employers, these shifts open new doors. With a greater pool of talent emerging from retail settings, there’s potential to find experienced, passionate professionals ready for a change — but strategic hiring is key.

Fresh Talent Availability

The downsizing anticipated from larger pharmacy chains has made more pharmacists and technicians available, providing independent pharmacies and those operating outside of the retail setting with a larger hiring pool.

These candidates bring valuable experience, especially in high-demand settings, but may have different expectations based on their retail background.

Quality Over Quantity

As tempting as it might be to hire readily available retail candidates, it’s important to carefully evaluate each individual’s fit with your organization.

A smooth transition from retail to a different vertical of pharmacy — such as compounding, long term care, or an entirely remote setting — might require extra onboarding and communication. But with the right fit, these employees can be incredible assets.

Employers who prioritize quality over quantity in hiring will avoid potential mismatches that can impact both team morale and patient care.

Managing Work Expectations

Employees from retail environments may have different expectations around support, workload, and patient interactions.

Employers have an opportunity to set clear expectations and differentiate their organization by creating a positive, balanced workplace — one that’s supportive, empowering, and that addresses some of the burnout retail employees have experienced.

What Pharmacy Employees Should Know About Non-Retail Opportunities

For those working in retail pharmacy, this period of industry flux is an ideal time to explore other career paths. Outside of retail, many rewarding, balanced, and engaging roles await.

Explore New Paths

Whether in hospital settings, telehealth, compounding pharmacies, or closed doors, pharmacy professionals are finding new paths that align with their skills and values.

These environments can offer greater flexibility and a renewed connection to patient care, making them an attractive alternative to traditional retail pharmacy.

Evaluate Fit and Transferable Skills

Retail pharmacy employees have valuable experience — efficiency, customer service, problem-solving — which are sought-after skills in almost any setting.

As a pharmacy professional, consider what you enjoy most about your work and pursue roles that prioritize those aspects. Yes, they do exist!

Key Takeaways: What This Means for Both Pharmacy Employees and Employers

For Employees

If recent closures and layoffs feel like a wake-up call, it’s okay to explore your options. New opportunities are out there, and a fresh start could mean a healthier, more balanced career.

Now is the time to put well-being first and prioritize work that fuels you, not drains you.

For Employers

This transition is a chance to build a resilient, engaged team by taking a thoughtful, strategic approach to hiring.

Stand out by prioritizing your team’s health and fostering a workplace that values collaboration and support. By doing so, you’re not just filling roles — you’re creating a place where people want to stay and grow.

Embracing Change and Moving Forward

The pharmacy industry may be changing, but this shift is a chance to evolve.

Employees can seize this moment to explore new career paths that align with their personal and professional goals, while employers have a unique opportunity to create a workplace that’s genuinely supportive and resilient, setting a new standard for the pharmacy field.

ASG Pharmacy is here to help both sides navigate these transitions. For employees, we connect you to rewarding roles that align with your skills and values, offering options that prioritize work-life balance and career growth.

For employers, our pharmacy staffing services ensure you have access to qualified professionals who are a perfect fit for your organization – so you can create a team that’s prepared to thrive in today’s dynamic pharmacy landscape.

Change isn’t always an easy pill to swallow, but with a healthy dose of well-being and a sprinkle of bold thinking, pharmacy professionals can turn these shifts into something positive.

Together with ASG Pharmacy, let’s dispense a better future for the industry — one where everyone can truly thrive.