Thrifty Ice Cream, a beloved ice cream brand founded in 1940 in Los Angeles, has been a cherished part of American dessert culture for over 85 years. Known for its unique square-topped scoops and small-batch production, Thrifty earned a loyal following and numerous accolades, including celebrity endorsements. Its visibility was particularly evident in over 500 scoop counters in West Coast Rite Aid stores, as well as on the shelves of more than 2,300 chain and grocery stores across the U.S. and Mexico.
The surprising reason for shutdown
Unlike the usual scenario, the shutdown of 500 Thrifty Ice Cream stores is not symptomatic of sluggish sales or waning popularity of the firm in general. Rather, the closures are a natural result of Rite Aid pharmacy chain’s bankruptcy filing in which such ice cream counters are located within its outlets. Rite Aid has closed numerous outlets due to Rite Aid’s Chapter 11 bankruptcy, and since Thrifty counters are integrated into these stores, they have to be closed as well.
This leaves the future of the ice cream business in the hands of the retail partner’s financial well-being and not its own performance. The Thrifty Ice Cream stands within Rite Aid stores cannot be independently sold, taking away from possible continuation at these locations.
What happens next for Thrifty Ice Cream?
Even with the large-scale closure of store counters, the future of Thrifty Ice Cream is not entirely gloomy. The brand continues to be found in packaged form—pints, quarts, and branded cake cups—nationwide in supermarkets. Various franchised scoop counters located away from Rite Aid outlets are still functioning, and the brand is also available in other areas beyond California and Arizona, going as far as areas in Mexico.
One of the interesting things about Rite Aid’s bankruptcy filing is the sale of Thrifty Ice Cream as an asset. A buyer could potentially buy the brand and resume production and distribution, and even purchase the manufacturing plant in an attempt to restart or expand operations. But then there is the likelihood that no buyer will emerge, and that would threaten the future of the brand.
Industry challenges and corporate restructuring
The struggles of Thrifty Ice Cream are part of the broader trend of retail and ice cream restructuring. Several drugstore chains such as CVS and Walgreens have been closing locations since the pandemic that have affected in-store vendors such as Thrifty.
Simultaneously, Unilever, a global conglomerate in the ice cream business with its Ben & Jerry’s and Magnum brand, said it would spin out its ice cream business by the end of 2025. This is prompted by its strategic priority in faster-growing categories with better margins like beauty and personal care, and weaker growth and rising competition in the ice cream category. Unilever’s decision also involves cutting 7,500 jobs globally, in line with the adversities even large players face in the ice cream market.
The closing of 500 Thrifty Ice Cream stores is a sad day for enthusiasts of the classic brand, but it is the handiwork of Rite Aid’s financial woes and not the taste or popularity of the ice cream. Although the scoop stands in Rite Aid locations will vanish, the brand itself might still be found on grocery store shelves and franchised outlets if it is purchased. Thrifty Ice Cream’s fate hangs in the balance but not quite completely.
This trend highlights the way joined-up retail partnerships are vital to the viability of vintage brands and the way outside factors such as retail failures can have a dramatic effect on favored merchandise.
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