In a recent earnings report, Walgreens announced plans to close 1,200 stores across the U.S. over the next three years.
This decision comes as part of a broader cost-cutting initiative aimed at refocusing the company’s efforts on its primary business as a retail pharmacy.
Walgreens intends to close 500 stores by the end of fiscal year 2025, with additional closures to follow through 2027.
Why the Closures?
Walgreens, like many traditional drugstores, has faced increased competition from online retailers, such as Amazon, and declining drug reimbursement rates.
Other pharmacy chains, including CVS and RiteAid, have experienced similar financial pressures. CVS implemented thousands of layoffs in 2023, and RiteAid declared bankruptcy the same year.
In a statement, Walgreens also cited “sluggish consumer spending” as a contributing factor to its decision.
What Locations Will Be Closing?
The company has yet to release a list of specific stores slated for closure.
However, Walgreens has indicated that it will target underperforming stores, focusing on locations the company owns or where leases are nearing expiration.
