In 2023, about one impartial pharmacy closed day by day, and related numbers are anticipated for this yr in keeping with the Nationwide Group Pharmacists Affiliation.
A family-owned pharmacy that has been the cornerstone of a San Francisco neighborhood for greater than 100 years is closing up store on Tuesday.
Jerry Tonelli, the proprietor of Central Drug Retailer within the Excelsior District, posted on Fb final month that he was retiring after fortunately serving because the neighborhood pharmacist for 50 years. The store’s final day after its historic run was deliberate for July 15, in keeping with the publish.
The Tonelli household has been serving the neighborhood since taking up the enterprise in 1965. Nonetheless, the institution’s roots within the space run a lot deeper, relationship again to the early 1900s.
WHY NEIGHBORHOOD PHARMACIES ARE CLOSING
“We’re a small, however mighty, pharmacy. And we’re proud to say that we have now outlasted Walgreens, CVS, Ceremony Support and mail order providers. I’m happy to say that is my alternative and I’m leaving alone phrases,” Tonelli stated within the discover posted on the shop’s Fb web page. “It’s time for all of us to start out a brand new section in our lives and spend extra time with our households.”
The household continued saying that the drug retailer would not exist if not for its prospects, who had stood by the household after they took over the enterprise.
Pharmacist and Central Drug Retailer proprietor Jerry Tonelli stands for a portrait among the many aisles of Central Drug Retailer in San Francisco, California on June 25, 2025. (Jessica Christian/San Francisco Chronicle by way of Getty Pictures / Getty Pictures)
The announcement was met with an outpouring of assist from prospects who expressed how vital the enterprise had been to the neighborhood.
“I can not let you know what number of lives you will have impacted,” one buyer commented.
WALGREENS TO CLOSE 1,200 STORES AS PART OF TURNAROUND EFFORT
One other stated: “I can’t put into phrases what a blessing Central Drug, Jerry and the Tonelli household have been to me and my household for over 50 years.”
One buyer posted: “I used to be so unhappy to listen to that you simply have been leaving in any case these years of your laborious work and dedication to all of your prospects, there is not going to be one other pharmacist or drugstore like yours.”
For the Tonelli household, the pharmacy was greater than only a enterprise. His mother and father met on the retailer, Tonelli instructed CBS.

The outside of Central Drug Retailer in San Francisco, California on June 25, 2025. (Jessica Christian/San Francisco Chronicle by way of Getty Pictures) / Getty Pictures)
Tonelli took over the enterprise in his 30s after his father died. Nonetheless, his mother labored within the store up till she was 96 years outdated, in keeping with the outlet.
Impartial pharmacists have been grappling with a myriad of economic and operational pressures, which many blame on pharmacy profit managers. PBMs act as intermediaries between insurers, drug producers and pharmacies, negotiating drug costs and reimbursement charges. PBMS are sometimes tied to bigger retail chains.
GET FOX BUSINESS ON THE GO BY CLICKING HERE
PBMs contend that they negotiate drug costs to decrease prices for shoppers and embrace impartial pharmacies of their networks, typically reimbursing them at increased charges than retail chains. However impartial pharmacists have beforehand instructed FOX Enterprise that it is threatening their enterprise fashions, as they scale back reimbursement charges for drugs, making it tough to cowl operational prices.

Classic pharmacy drawers line the partitions of Central Drug Retailer in San Francisco, California Wednesday, June 25, 2025. ( Jessica Christian/San Francisco Chronicle by way of Getty Pictures) / Getty Pictures)
Tonelli made it clear his store withstood the pressures of the pharmacy behemoths and that he was retiring on his “personal phrases.” However whereas Tonelli’s enterprise was in a position to survive the tumultuous setting within the trade, he’s nonetheless frightened that different impartial pharmacies will proceed to get compelled out by firms.
“Town began letting Walgreens come into town, and what occurred then was they normally opened up subsequent to the impartial, and ultimately the impartial needed to shut,” Tonelli instructed CBS.

