Pharmacy chain Walgreens has announced plans to shut down approximately 1,200 locations within the next three years as part of a strategic effort to revitalize its struggling U.S. business. The decision comes after a significant $3 billion quarterly loss. The company anticipates closing around 500 stores during the current fiscal year.
While specific closure locations were not revealed, all affected stores are situated in the United States. This move is a key component of the company’s comprehensive turnaround plan for its U.S. operations and involves closing 300 stores previously approved under a cost-cutting initiative.
Walgreens CEO Tim Wentworth stated that 2025 is a “rebasing year” for the drugstore chain. “This turnaround will take time, but we are confident it will yield significant financial and consumer benefits over the long term.”
Walgreens is not alone in its struggle; its competitors have also been forced to make significant adjustments to survive. Rival CVS Health Corp is nearing the end of its three-year plan to close 900 stores, while Rite Aid Corp has only 1,300 remaining after emerging from bankruptcy.
Rising costs, tight prescription reimbursements and the dominance of online companies such as Amazon, Walmart and Target are the reasons for the closures.
Since today’s announcement, Walgreens shares rose almost 4% before the opening bell. Analysts predict adjusted earnings of $1.72 per share for 2025.
By CEO NA Editorial Staff
