Walgreens Closing 1,200 Stores by 2027, Including 500 Stores Next Year
Walgreens is closing approximately 1,200 locations as the drug store chain struggles to contend with online competitors and declining prescription drug payments, reports CNN. By 2027, about one in seven Walgreens currently open will close its doors. About 500 Walgreens will be shuttered over the next year, the drug store chain announced Tuesday. Those closures represent a significant escalation from when the financially struggling company announced in June it was shutting 300 underperforming locations as part of a multiyear optimization program under CEO Tim Wentworth. At the time, Walgreens said about a quarter of its stores were unprofitable, and the chain promised “imminent” changes. Last quarter, Walgreens posted stronger-than-expected sales with revenue rising 6 percent for the same quarter year-over-year, but reported a $3 billion dollar loss.
Total Retail's Take: Walgreens is undergoing a "footprint optimization program" as part of its turnaround efforts, according to a company press release. The pharmacy chain isn't alone in its struggle to regain profitability, as other large drugstore chains such as CVS and Rite Aid have all announced cutbacks. Wentworth, CEO of Walgreens Boots Alliance, said in a statement that the company is "focusing on stabilizing the retail pharmacy by optimizing our footprint, controlling operating costs [and] improving cash flow," among other strategies in 2025.
“Fiscal 2025 will be an important rebasing year as we advance our strategy to drive value creation. This turnaround will take time, but we're confident it will yield significant financial and consumer benefits over the long term,” commented Wentworth.
The continued closures of chain drugstores deemed unprofitable often leave consumers in a pinch to access pharmacy services. Many rural towns across the U.S. are being hit particularly hard, finding themselves suddenly in a "pharmacy desert." A successful turnaround for Walgreens, and other chains like CVS and Rite Aid, is important not only for company stakeholders but consumers across the nation seeking accessible, essential pharmacy services.
Kristina Stidham is the digital content director at Total Retail and sister brands Women in Retail Leadership Circle and Women Leading Travel & Hospitality at NAPCO Media. She is passionate about digital media and handles video, podcast and virtual event production for all brands. You can often find her at WIRLC, TR, WLT&H or industry events with her camera and podcasting equipment—or at home on Zoom—recording interviews with thought leaders and business executives.
Kristina holds a B.A. in Media Studies and Production from the Temple University Klein College of Media and Communication in Philadelphia. Go Owls! When she's not in the office, she loves to go on long walks, sing around the house, hangout with her family and two pet guinea pigs, and travel to new places.
