Walgreens announced on Thursday, June 27, that it will close a meaningful percent of its 8,600 locations across the country, according to the company’s CEO, Tim Wentworth. The decision came as the chain faces profitability challenges and declining margins.
Although the exact number of store closures remains unknown, Wentworth stated that the most underperforming stores would be affected. Walgreens has closed 625 stores since February 2024 and reduced prices on over a thousand products in May.
The decision to close stores is attributed to a difficult working environment, including pressures on consumers and inventory loss due to theft. The pharmacy chain adjusted its profit outlook for the year, expecting earnings per share to be between $2.80 and $2.95, down from the initial forecast of $3.20 to $3.35.
Wentworth emphasized that consumers have become increasingly selective and price-sensitive in their purchases.
Notably, Walgreens is not the only pharmacy chain impacted by market changes. Both Rite Aid and CVS have closed hundreds of locations due to declining profits. Rite Aid even filed for bankruptcy in October.
