Walgreens, one of the country’s biggest pharmacy chains, has announced plans to shut down 1,200 stores across the U.S. over the next three years. This move will impact approximately 13% of its total locations and is one of the largest pharmacy closures in recent years.
The closures are part of a broader restructuring plan to improve profitability and adapt to changing consumer behaviors. Walgreens’ leadership revealed that financial pressures and shifting market dynamics are the main reasons behind the decision. As the news spreads, many customers and employees are anxiously awaiting news about which specific stores will be affected in their communities.
Why Walgreens Is Closing So Many Stores
Walgreens’ plan to close 1,200 stores stems from a combination of financial and market pressures. The company has seen declining profits amid growing competition from online retailers like Amazon and traditional rivals like CVS and Walmart. On top of that, rising operating expenses, changing prescription reimbursement rates, and the lasting impact of the COVID-19 pandemic have further hurt store performance.
Walgreens has also been affected by opioid litigation settlements, which have added to its financial strain. By shutting down underperforming stores, Walgreens aims to streamline operations, cut costs, and focus its resources on stores with stronger sales and growth potential.
Which Stores Are Closing First?
Although Walgreens has not yet released a complete, detailed list of the 1,200 stores set to close, some locations have already been marked for shutdown in early 2025. Initial closures are expected to hit major cities like San Francisco, Chicago, and New York City, where several underperforming stores have been identified.
However, small towns and rural communities could also be affected, especially stores that have seen less foot traffic in recent years. Walgreens will announce closures in phases, informing customers and employees beforehand. If you rely on a specific Walgreens, it’s advised to stay updated through official company announcements.
The Impact on Local Communities
The closure of these stores will have a massive impact on many local communities, especially those in underserved or rural areas. Walgreens is not just a pharmacy; it is also a convenient source for groceries, household goods, and basic healthcare services.
The closure of local Walgreens stores raises concerns about creating “pharmacy deserts,” which are areas where residents have limited access to prescription medications and basic healthcare services. This issue could be especially harmful to seniors, people with disabilities, and people without reliable transportation. Community leaders are urging Walgreens to consider these impacts and work with local governments to provide alternative solutions for affected neighborhoods.
What This Means for Employees
Additionally, these closures will directly impact thousands of Walgreens employees. Although Walgreens has stated that it will transfer as many employees as possible, layoffs are inevitable, especially in areas with multiple closures. The uncertainty of this situation has caused anxiety among staff members, many of whom have served their communities for years.
Walgreens has promised severance packages and job placement assistance for employees who lose their positions. However, it is important to note that the job market for retail pharmacy workers is becoming increasingly competitive, which will make the transition challenging for many affected employees.
Competitors Facing Similar Challenges
Walgreens is not alone, as competitors are facing similar challenges. In recent years, stores like CVS and Rite Aid have also announced significant store closures. In November 2021, CVS Health announced plans to close approximately 900 stores nationwide over three years, while Rite Aid filed for Chapter 11 bankruptcy in October 2023.
It seems that the entire retail pharmacy sector is struggling with rising costs, shrinking profit margins, and the growing popularity of mail-order and online pharmacies. These challenges are forcing many companies to rethink their brick-and-mortar strategies and invest more in digital services and healthcare partnerships to stay relevant and profitable.
How Store Closures Are Decided
Walgreens has been using a variety of criteria to decide which stores should close. These factors include financial performance, lease terms, proximity to other Walgreens locations, and local market conditions. They are more likely to close stores that consistently underperform or are located in areas with declining populations.
Walgreens is aware of how the closures will affect customers and employees and is working to minimize disruption where possible. Executives have revealed that the closures are part of a “footprint optimization program,” intended to support long-term stability by focusing on the most successful and strategically located stores.
The Future of Pharmacy Access
With so many stores closing, people are concerned about the future of pharmacy access in America. In some regions, especially rural and low-income urban areas, the loss of local pharmacies can mean longer travel times for prescriptions and healthcare products.
These closures could lead to delays in medication adherence and worsen health outcomes for vulnerable populations. Healthcare advocates are now urging increased investment in telepharmacy services, mail-order prescriptions, and local health initiatives to help fill the gap left by these closures. Walgreens plans to expand its digital offerings, but the shift may not be smooth for everyone, especially people who rely on in-person assistance or lack reliable internet access.
Financial Outlook for Walgreens
Walgreens executives believe that these changes will improve the company’s financial health. By closing unprofitable locations and streamlining operations, Walgreens aims to increase its earnings, improve its cash flow, and invest in new healthcare services.
The company has reported some positive results in recent quarters, with revenue and adjusted earnings exceeding Wall Street expectations. However, Walgreens’ stock price has struggled, reflecting investor concerns about long-term growth. The company’s ability to successfully navigate this transition will be closely watched by analysts, employees, and customers.
Is Your Local Store on the List?
With 1,200 stores closing, many customers are anxious to know if their local Walgreens is at risk. The company plans to release detailed closure lists in phases and will notify affected communities and employees in advance.
For updates, customers can check Walgreens’ official website, local news outlets, and in-store postings. If your local store is closing, Walgreens will provide information on prescription transfers and alternative locations nearby. Staying informed about the latest updates can help make the transition easier and ensure continued access to vital pharmacy services.
The Scale of the Shutdown
Currently operating around 8,300–8,700 stores, Walgreens will reduce its footprint by about 13%, meaning one in every seven stores will close by 2027. The closures are being rolled out over three years, with roughly 500 stores set to shutter by the end of the company’s fiscal year in August 2025. The scale of this shutdown reflects the company’s response to mounting financial pressures and shifting consumer habits, as it aims to focus resources on more profitable locations and adapt to the changing pharmacy landscape.
Timeline for the Closures
Walgreens began closing stores in September 2024, with about 70 locations shuttered by November 2024. The company plans to close approximately 500 stores throughout its fiscal year 2025, which ends in August 2025, as part of a broader plan to close 1,200 stores over three years.
The closures are occurring in waves, with many stores closing between February and May 2025 across various states, including California, Illinois, and Georgia. While a list of affected stores has not been released, specific closures have been confirmed in cities like San Francisco and Chicago, with all the closures to be completed by 2027.
States Already Affected
Walgreens’ closures have already impacted dozens of states, with confirmed shutdowns in California, Illinois, Georgia, Colorado, Connecticut, Massachusetts, Wisconsin, Kansas, and Texas. California has seen some of the most significant losses, including 12 stores in San Francisco and additional closures in Oakland and Fresno. Illinois, especially Chicago and Rockford, has also been hit with multiple store closures.
In the South, Georgia’s Augusta and three locations in Texas have been affected. Other states like Colorado, Connecticut, Massachusetts, Kansas, and Wisconsin have also experienced closures, with more expected as the company continues its nationwide reduction.
How to Check If Your Store Is Closing
To find out if your local Walgreens is on the closure list, the company advises customers to check their official store closing page online, where updates and important information about affected locations are posted. Walgreens also recommends visiting or calling your store directly for confirmation.
Customers with prescriptions at closing stores will receive letters with details on transferring prescriptions to nearby Walgreens pharmacies, and can also call the dedicated Save A Trip Refills hotline for assistance.
What Customers Are Saying
The announcement of these closures has sparked significant concern among customers, with nearly 60% saying they would be moderately or significantly impacted if their local store shuts down. Over half of shoppers expressed frustration and disappointment, citing convenience as the primary reason they choose Walgreens.
Many rely on the chain for prescriptions and everyday items like over-the-counter medications and personal care products. The closures have left some communities scrambling to find alternatives, though most customers indicated they would switch to other drugstores rather than mass retailers.
The Role of Online Retailers
Online pharmacies are rapidly transforming the pharmacy sector by offering consumers the convenience of purchasing medications and health products digitally, without needing to visit physical stores. The global online pharmacy market is projected to grow from around $112 billion in 2024 to over $131 billion in 2025, with a strong compound annual growth rate exceeding 17%, driven by increased internet penetration, mobile app usage, and telehealth integration.
This growth is fueled by consumer demand for easy access, home delivery, and personalized medication management, especially for chronic conditions.
How to Prepare as a Customer
Customers should proactively prepare by transferring prescriptions early to nearby locations or using Walgreens’ online services for refills and home delivery. Embracing digital tools like mobile apps for prescription management, scheduling telehealth consultations, and using price comparison features can help maintain seamless care. Staying informed through official Walgreens communications and checking store status regularly will ensure you’re not caught off guard.
San Francisco Hit Hard
San Francisco was struck with 12 stores shut down between February 24 and 27, 2025, cutting the city’s Walgreens locations by about a quarter. These closures affect neighborhoods including the Mission District, Bayview-Hunters Point, SoMa, and Nob Hill, leaving over 65,000 residents without a nearby Walgreens pharmacy. The company cited increased regulatory and reimbursement pressures and high rent and staffing costs as reasons for the shutdowns.
The Company’s Official Statement
Walgreens CEO Tim Wentworth acknowledged the company’s challenges, including declining reimbursement rates, rising operational costs, and intense competition from online and big-box retailers. “We know that our stores are important to the communities that we serve, and therefore do everything possible to improve the store performance,” Walgreens said.
“When closures are necessary, like those here in San Francisco, we will partner with community stakeholders to minimize customer disruptions.”
What’s Next For Walgreens?
The company is being acquired by private equity firm Sycamore Partners in a $10 billion deal expected to be finalized by late 2025. Experts predict that the new ownership will likely continue the planned closures to focus on revitalizing the remaining stores and improving profitability. Walgreens aims to concentrate on about 6,000 profitable locations while expanding digital services and store-branded products to better compete with online retailers and big-box competitors.
However, the acquisition raises concerns about more aggressive cost-cutting measures, including further store shutdowns and workforce reductions, as the company seeks to reset its business model amid intense industry challenges.
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