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Walgreens to close thousands of stores by 2027
Walgreens to close thousands of stores by 2027Scott Olsen
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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 U.S. stores.
CEO of Walgreens Tim Wentworth recently explained to Wall Street Journal on June 27 that the closures would focus on locations that are unprofitable, too close to each other or stores with theft problems.
It also follows a decreasing trend of picking up prescriptions in person, with many people opting to fill in your scripts online. “The current pharmacy model is not sustainable,” Wentworth told investors, according to a CNN report. Stores like CVS (which plans to close pharmacies in selected targets) and Rite Aid also saw profits decline due to lower prescription drug reimbursement rates.
Price-conscious consumers have also been bypassing the candy and card aisles — instead, they’re filling their digital carts at Walmart and Amazon. “Our customers are becoming increasingly selective and price-sensitive in their purchases,” Wentworth told the Associated Press.
While the company did not announce a specific number of store closures, Walgreens officials said they plan to close “significant” underperforming stores across the United States. That number could also grow if performance does not improve.
According to CNN, 75% of the company’s U.S. stores account for 100% of its operating revenue. The company will be looking at the remaining 25% of its 8,600 stores for closure. That amounts to around 2,150 stores closing across the country in the next three years.
While Wentworth confirmed that the company will close several of its underperforming stores, he added that other locations may be transitioned to profitability. Additionally, employees working at the affected stores will be offered jobs elsewhere, in the hopes that the move will not result in “significant job losses.” according to the executive.
Correction (07/08/2024): A previous version of this story listed store closures by state. A Walgreens representative told Good Housekeeping that 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 are finalizing an optimization program that we expect to include closing a significant portion of these locations over the next three years. We are also taking a number of actions and making investments to improve the customer and patient experience.”
The story continues
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