Many shoppers out there may soon need to find a new pharmacy. Walgreens will be closing up to 25% of its 8,600 stores within the United States by 2027.
According to Walgreens CEO Tim Wentworth, “changes are imminent.” Closures will focus on locations that aren’t profitable, too close to each other, or stores that are struggling with theft.
This follows a declining trend of picking up prescriptions in person. Many people are now opting to fill their scripts online. Nowadays, customers have become more selective and thrifty in their purchases.
Walgreens reps plan “significant” closures of underperforming stores across America. And if performance doesn’t improve, that number may grow.
CNN says 75% of the company’s U.S. stores account for 100% of its operating income. Walgreens will examine the remaining 25% of its 8,600 stores for closure, which equated to roughly 2,150 U.S. stores that will close shop over the next three years.
Wentworth confirmed that the company will be closing a number of its stores. However, he said that other locations could be shifted to profitability. His company is talking to pharmacy benefit managers to ensure they are paid fairly. He’s also working to grow other parts of its business, such as specialty pharmacy, which helps people with complex or chronic medical conditions.
Employees who are working at affected stores will be offered jobs elsewhere in hopes that the move doesn’t lead to a meaningful loss of jobs, Wentworth said.
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