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DEERFIELD, Il. - Walgreens, one of the largest pharmacy chains in the United States, is set to close 500 locations in 2025 as part of a sweeping $1 billion cost-cutting initiative. This move is a significant step in the company's broader strategy to shut down 1,200 underperforming stores over the next few years. It has already closed 70 locations since the start of the year.
With approximately 8,500 stores currently operating nationwide, Walgreens' planned closures will see nearly one in seven locations shuttered by 2027. CEO Tim Wentworth, who announced the turnaround strategy last year, aims to restore the company's market value, which peaked at $100 billion in 2015.
“We recognize where we are is a turnaround,” Wentworth stated during an earnings call in June. “This turnaround will take time, but we are confident it will yield significant financial and consumer benefits over the long term.”
According to Wentworth, about 25% of Walgreens stores have failed to generate profits or contribute to the company’s long-term strategy. The closures are proceeding despite Walgreens exceeding Wall Street expectations in its fourth-quarter and full-year earnings for fiscal 2025.
Wentworth has remained optimistic, emphasizing that the company’s 6,000 profitable locations will serve as a foundation for future investment. “This solid base supports our conviction in a retail pharmacy-led model that is relevant to our consumers, and we intend to invest in these stores over the next several years,‘‘ he noted.
Walgreens has yet to release a full list of the stores slated for closure this year. USearch has compiled a list of the Walgreens locations in each state that have permanently closed this year.
The pharmacy industry has been facing mounting financial pressures due to declining prescription reimbursements, rising theft, and increasing operational costs. Additionally, shifting consumer preferences have driven more shoppers to online retailers and discount competitors like Amazon and Walmart.
The closures at Walgreens follow similar moves by rivals. CVS recently completed a three-year plan to shut down 900 stores, while Rite Aid has scaled down to 1,300 locations after emerging from bankruptcy.
The restructuring efforts follow Walgreens' $10 billion acquisition by private equity firm Sycamore Partners earlier this month. Sycamore, known for acquiring struggling retail brands such as Staples and Nine West, has a track record of implementing cost-cutting measures, including store closures and asset sales, to drive profitability.
While the acquisition marks a new chapter for Walgreens, the pre-planned closures are expected to continue under Sycamore’s ownership.
“I'd imagine their new owners will evaluate heavily both internal data and external data around the communities each of the soon-to-be-closed stores sit within,” retail expert Nicole Leinbach Hoffman told Newsweek.
“If I had to guess, they'd still close them, however, to open up dollars to nurture the remaining stores with a refreshed strategy.”
