Walgreens announced plans to close 1,200 stores across the US, beginning with 500 closures in the first year. The company cited rising retail crime and fierce competition in the pharmacy market as reasons for the decision. This expansion of store closures follows an earlier announcement to close 300 stores.
CEO Tim Wentworth explained that the company is taking action after identifying that 25% of its stores are not profitable. Despite increased sales last quarter, Walgreens reported a $3 billion loss due to its investment in CareCitrix, a Chinese pharmaceutical chain.
Retail theft has been a major challenge for Walgreens, particularly in states like California and New York, where theft rings have targeted products ranging from toothpaste to hair care. In San Francisco, five Walgreens locations have already shut down due to these issues.
The closures are part of a larger effort to streamline operations, but Wentworth emphasized that most of Walgreens’ 8,500 stores remain profitable. “We are committed to investing in these stores,” he told analysts.
States with the highest number of Walgreens locations — Florida, Texas, Illinois, California and New York — are expected to feel the impact of these closures.
