Walgreens Closes Dozens of Stores Nationwide as Part of Cost-Cutting Initiative
The pharmacy chain is shuttering underperforming locations as part of a multiyear plan to reduce costs and focus on more profitable sites.
Walgreens has closed dozens of stores across at least a dozen states as part of a multiyear strategy to reduce costs and eliminate underperforming locations. The closures include sites in New York, New Jersey, California, Florida, Illinois, Missouri, South Carolina, Texas, Virginia, Washington State, Washington D.C., and Wisconsin.
This initiative is a revised approach to a plan first announced in October 2024. Initially, Walgreens intended to close approximately 1,200 underperforming stores over three years, with 500 closures planned for 2025, aiming to cut $1 billion in costs. However, following its acquisition by private-equity firm Sycamore Partners and the company going private, the scope of the closures has been reduced. Walgreens now anticipates closing fewer than 100 stores this year.
Among the recent closures are multiple locations in New Jersey's Bergen County and one in Brooklyn, New York. Despite these reductions, Walgreens, with around 8,500 stores nationwide, remains the second-largest pharmacy chain in the United States.
Customers whose local Walgreens closes do not need to take action to transfer their prescriptions. All Walgreens pharmacies have access to patient prescription, insurance, and medication records. Prescriptions can be refilled at other Walgreens locations, or customers can opt for prescription delivery services. Affected customers will receive 90 days of free prescription delivery following a store closure.
The company stated that the downsizing aims to concentrate on its most profitable locations and improve overall profit. In 2024, Walgreens executives indicated to analysts that as many as one in four of its stores were not profitable. The company has faced challenges including weaker retail sales and reduced drug reimbursement rates, which is the payment pharmacies receive for dispensing prescription medications. Walgreens is prioritizing store closures in locations with expiring leases, underperforming sales, and ongoing theft issues.