Drugstore closures are fueling discount chains’ expansion plans

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Large-scale closings in the US drugstore industry have created a fresh supply of cheap properties, and discount chains such as Dollar Tree, Five Below, and Burlington are buying up leases at auction to fuel their growth plans, according to data from A&G Real Estate Partners.

“Many retailers, especially off-price and value-oriented operators, have made lease auctions and property sales a key component of their growth strategy,” A&G Co-President Emilio Amendola said in a statement. “We’re seeing disciplined operators turn other companies’ portfolio changes into strategic expansion opportunities as they seek high-traffic locations.”

In 2025, A&G handled a campaign for Rite Aid that attracted more than 1,700 interested parties and generated $95 million in recoveries from the likes of Ross, Burlington, and Ace Hardware. It also sold 50 former Rite Aid properties outright to specialty chains such as Barnes & Noble, Hobby Lobby, and Michaels. The interest from discounters came as rival pharmacy chains Walgreens and CVS also took over more than 1,000 Rite Aid locations.

Now Walgreens is also contributing to the supply of properties as it shrinks its footprint in a bid to rightsize its business. A&G is marketing 78 locations across the US, and is pitching them directly to off-price, discount, and specialty retailers.

In a tight market for commercial real estate, growth-oriented retailers have become more opportunistic when it comes to securing property, swooping in when other companies exit the market. Dollar Tree and Five Below similarly pounced when a bankrupt Party City started auctioning off properties last year.