There was a time when nearly every street corner had a pharmacy. But in the past year, a wave of closures has swept across the industry, not because demand has vanished, but because the way we fill prescriptions has changed.
Pharmacies have always been innovative, meeting customers’ needs in many ways. In addition to their core service of filling prescriptions, many expanded their offerings to include general merchandise such as personal care, beauty products, and household items.
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This made a pharmacy trip an opportunity to grab some quick groceries. Other pharmacies like CVS were operating inside Target stores, enabling consumers to meet their pharmacy needs on-site while stocking up on food or other supplies.
However, as mail-order prescriptions and same-day delivery of pharmacy essentials grew, demand for traditional in-store services began to decline. Some of the major pharmacy chains started closing their doors.
Among the biggest names are Rite Aid, which closed all locations as part of its bankruptcy filing, and Walgreens, which plans to close over 1,200 stores by 2027.
CVS also confirmed it will shut down close to 300 stores this year, and Drug Emporium recently announced it is closing its West Virginia locations.
Amid widespread pharmacy closures, Walmart (WMT) announced a major expansion.
Walmart to open largest centralized prescription processing facility
On May 22, the retail giant announced it’s expanding its Central Fill network with a new 102,000-square-foot facility, aiming to serve nearly 90% of Walmart pharmacies by the end of 2026.
The expansion comes at a time when the demand for more convenient pharmacy services is surging, and centralized prescription fulfillment enables Walmart pharmacists to focus less on processing and more on personalized care, offering faster delivery, immunizations, testing, and treatment services.
Walmart’s largest centralized prescription processing facility to date in Frederick, Maryland, is capable of fulfilling up to 100,000 prescriptions a day, supporting more than 700 stores across 16 states and Washington, D.C.
The facility combines advanced automation, like robotic carriers and dynamic systems, with expert pharmacists and technicians to efficiently manage all aspects of prescription fulfillment.
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“This facility represents the next chapter in how we care for our customers,” said Walmart Senior Vice President of Pharmacy Kevin Host. “With greater efficiency behind the scenes, our pharmacists can spend more time in front of patients — offering expert guidance, building trust, and delivering better health outcomes.”
Walmart has been developing the Frederick site for about two years, making the opening a major milestone in the retailer’s health and wellness strategy. However, Walmart has even bigger plans on the horizon.
Walmart has two more facilities in development
Walmart also announced that two more facilities are in development, one in Phoenix, Arizona, and another in Republic, Missouri. The two are expected to open in 2026.
The retailer highlighted that these investments are a key part of its pharmacy strategy, as they simplify the refill process and enable pharmacies to focus on care.
“Central Fill automation is part of Walmart’s investment in automation, fueling our human-led, tech-powered approach to serving customers,” the company stated.
“I see firsthand how important convenience and accessibility are for our patients,” said Walmart Pharmacy Manager Ugo Nwachukwu in Alexandria, Virginia. “Whether someone needs a prescription delivery, help managing a disease state, or a walk-in vaccine before a trip, they know they can count on us to be there.”
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The company stressed that the idea is to make everything more convenient for customers by enabling them to get the medications and health services they need, on their schedule.
Over the last five years, Walmart stock gained 131.49% and is currently trading at $95.93 per share.
