Walgreens to Close 1,200 Stores by 2027 Amid Industry Challenges

The pharmacy chain aims to optimize operations and improve profitability as it faces online competition and reimbursement pressures.

Walgreens plans to shut down 1,200 stores over the next three years, with 500 closures expected by the end of fiscal 2025.
The decision follows financial pressures from shrinking prescription reimbursements and increased competition from online retailers.
CEO Tim Wentworth emphasizes a focus on stabilizing core economics and improving shareholder value through cost reductions and strategic closures.
Approximately 6,000 of Walgreens' 8,500 U.S. stores remain profitable, forming the foundation for future investments and operational adjustments.
The company is negotiating with pharmacy benefit managers for fairer prescription reimbursements and exploring smaller store formats to enhance customer service.