Walgreens Is Closing Thousands of Stores by 2027
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Shoppers, it may be time to find a new pharmacy. Walgreens is closing up to a quarter of its 8,600 stores within the United States.
Walgreens CEO Tim Wentworth recently explained to the Wall Street Journal on June 27 that the closures would focus on locations that aren't profitable, too close to each other or stores struggling with theft.
It also follows a declining trend of picking up prescriptions in person, with many people opting to fill their scripts online. "The current pharmacy model is not sustainable," Wentworth told investors, according to CNN's reporting. Stores like CVS (which plans to close pharmacies in select Targets) and Rite Aid have similarly experienced declining profits because of lower reimbursement rates for prescription drugs.
Price-conscious consumers have also been disregarding the candy and card aisles — rather, filling their digital carts at Walmart and Amazon. “Our customers have become increasingly selective and price sensitive in their purchases,” Wentworth told the Associated Press.
While the company didn't announce a specific number of store closures, Walgreens reps said that they plan “significant” closures of underperforming stores across America. That number may grow, too, if performance doesn't improve.
According to CNN, 75% of the company's U.S. stores account for 100% of its operating income. The company will examine the remaining 25% of its 8,600 stores for closure. That equates to roughly 2,150 stores closing shop across the country over the next three years.
Though Wentworth confirmed that the company will close a number of its underperforming stores, he added that other locations could be shifted to profitability. What's more, employees working at affected stores will be offered jobs elsewhere in hopes that the move doesn't lead to “a meaningful loss of jobs,” according to the exec.
Correction (7/8/2024): A previous version of this story listed store closures by states. A Walgreens representative told Good Housekeeping an official list has not been released by the company, and offered this statement. "Approximately 25% of Walgreens stores are not contributing to our long-term strategy. We’re finalizing an optimization program that we expect will include closing a significant portion of these locations over the next three years. We are also taking a series of actions and making investments to enhance the customer and patient experience."
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