Walgreens is making significant cuts to its retail footprint, with plans to shut down 500 stores across the United States by the end of this fiscal year. As reported by Yahoo Finance, this is part of a larger strategy that will see 1,200 locations closed in total. With approximately 8,500 stores still operating across the U.S., the closure of these 500 locations marks a substantial shift for the retail giant.
Store Closures Begin and Expected Timeline
The store closures started in September 2024, and Walgreens aims to complete them by August 2025, coinciding with the end of its fiscal year. While Walgreens has not released a comprehensive list of the affected locations, reports of closures have already surfaced across various states. Notably, 11 stores in Colorado have been shut down, with three closing as recently as April. Connecticut, Massachusetts, Kansas, and California have also seen Walgreens locations close, with some stores in San Francisco experiencing long lines due to the reduced number of available stores.
Reasons Behind the Closures
Several factors have been cited as reasons for the closures, including “shrinking prescription reimbursements,” persistent theft, rising operational costs, and mounting competition from online retailers. Walgreens has stated that the closures primarily involve “poor-performing stores” or locations where the company owns the property or leases are set to expire.
What’s Next for Walgreens?
These closures are not isolated to Walgreens. Competitors like CVS Health and Rite-Aid have also been reducing their store counts. Walgreens has assured its customers that it will provide information on nearby locations and services through its website as more stores close.
For customers affected by these changes, Walgreens has posted a list of alternatives to help them find the nearest open stores, ensuring continued access to the services they need.
