Walgreens: Closing Doors, Seeking Fresh Start

Walgreens is shutting down about 1,200 of its stores in the U.S. This move comes as the drugstore chain faces challenges like reduced prescription payouts, increased costs, and competition from online retailers and rivals with lower prices. The pandemic boost from COVID-19 vaccinations has also worn off. Walgreens isn't alone; competitors like CVS and Rite Aid are also closing stores. Experts say smaller drugstores still have a future, but the industry is trying to figure out what that looks like. Walgreens plans to close 500 stores this fiscal year, focusing on poor-performing ones they own or where leases are ending.

The company's CEO, Tim Wentworth, says most of their stores are profitable and will be the base for future growth. Walgreens is also looking to sell more of their own branded products and experiment with smaller, cheaper-to-run stores. Pharmacists at these stores can provide health services, but Walgreens is rethinking its push into clinics with doctors. Experts note that drugstores have struggled to stand out and attract customers in recent years.

Actions