Walgreens to Close 1,200 US Stores

Walgreens has announced a plan to close about 1,200 stores in the U. S. over the next three years to tackle financial difficulties that led to a $3 billion quarterly loss. The closures will begin with approximately 500 stores in the current fiscal year, focusing on underperforming locations. This announcement coincided with better-than-expected quarterly results that helped lift the company's stock.

CEO Tim Wentworth reassured stakeholders that the majority of the remaining 8,500 stores are profitable, providing a foundation for future growth. This move underscores the challenges faced by traditional drugstore chains, including competition from online retailers and dollar stores. Analysts have raised concerns about the risk of pharmacy deserts, where access to drugstore services may diminish. Walgreens is also reassessing its healthcare service strategy, moving away from previous plans to expand primary care clinics, reflecting the need for adaptability in a changing retail environment.