Walgreens will shut down about 1,200 stores by 2027, including 500 in the next year, as it struggles with online competition and declining prescription payments. The closures mark a major expansion of earlier plans announced under CEO Tim Wentworth, who had initially targeted 300 underperforming locations.
Despite a 6% rise in quarterly revenue, Walgreens reported a $3 billion loss tied to writedowns involving a Chinese pharmaceutical chain and CareCentrix. Around 25% of its stores are currently unprofitable, highlighting deeper structural challenges.
The broader pharmacy sector is under pressure. Rivals like CVS Health and Rite Aid are also facing shrinking margins as reimbursement rates fall and competition from Amazon intensifies. CVS, for example, recently announced 2,900 job cuts to reduce costs.
At the same time, Walgreens is losing retail ground to chains like Target and Dollar General, especially in everyday goods. To stay competitive, it has already lowered prices on over 1,000 items.
While its stock rose slightly in premarket trading, Walgreens shares are still down nearly 70% this year, reflecting ongoing uncertainty about its future.
