Walgreens to close around 30 stores next week, a total of 500 stores to be shut down this year.
The second-largest drugstore chain in the United States, Walgreens, will be closing approximately 30 stores from May 19th to 22nd. The company announced in 2024 its plan to close 1,200 stores across the U.S. within three years, with about 500 stores set to close in 2025.
In California, two stores are set to close next week, located in Hayward in the San Francisco Bay Area and Los Gatos in Santa Clara County. Georgia will see the closure of five stores, while Connecticut, Massachusetts, and Pennsylvania will each have four stores closing. The remaining nearly 500 stores will be shut down before the end of the fiscal year in September.
As of March this year, Walgreens still operates over 8,300 stores across the United States, trailing only behind CVS pharmacy chain, which has over 9,100 stores nationwide. The former third-largest chain, Rite Aid, initiated bankruptcy proceedings on May 5th, with approximately 1,200 stores in the U.S. gradually closing or being sold.
Founded in 1901, the century-old Walgreens is headquartered in Chicago. In recent years, the company has faced multiple lawsuits involving discrimination, pricing discrepancies, expired medications, fraud, and the distribution of opioid drugs. In 2021, a federal jury found the company to be one of several chain pharmacies significantly responsible for the opioid crisis.
By the end of 2024, Walgreens reported a net loss of over $3 billion in the fourth quarter, attributing ongoing financial difficulties, competition from online retailers like Amazon and large retailers like Walmart, and frequent thefts to business contraction and profit decline. The closure of 1,200 stores was deemed necessary due to profitability issues, aiming to focus more on operating the remaining profitable over 6,000 stores.
According to a press release from the company on March 6th, Walgreens Boots Alliance signed a final agreement to be acquired by private equity firm Sycamore Partners for a total transaction value of $23.7 billion, with operations to continue under the names Walgreens, Boots, and its trusted consumer brands, maintaining its headquarters in Chicago.
CEO of Walgreens Boots Alliance, Tim Wentworth, stated that the alliance plays a critical role in the retail healthcare sector, striving to make services more efficient, convenient, and affordable while actively addressing challenges. Wentworth mentioned, “Though we are advancing our ambitious transformation strategy, creating meaningful value requires time, focus, and reform.” He expressed confidence that the agreement with Sycamore will bring premium cash value to shareholders and allow them to benefit from the additional value generated by the Village MD business monetization.
Wentworth also expressed gratitude to the global team of over 311,000 members, though the store closures will result in job reductions.
Sycamore Partners’ Director and Managing Partner, Stefan Kaluzny, highlighted the invaluable role that Walgreens, with its 125-year history, and Boots, with its 175-year-old legacy, along with their trusted brand portfolios, play in the lives of patients and customers. He emphasized that the transaction reflects confidence in Walgreens’ pharmacy-led business model and its significant role in delivering better outcomes for patients, customers, and communities.