Walgreens will close approximately 1,200 stores by 2027 as it struggles with online competition, lower prescription reimbursements, and declining retail sales. The company announced that 500 stores will shut down within the next year, marking a major escalation from earlier plans to close 300 underperforming locations.
Despite reporting 6% year-over-year revenue growth last quarter, Walgreens posted a $3 billion loss tied to writedowns of a Chinese pharmacy chain and its home care unit. Roughly 25% of Walgreens stores are currently unprofitable, according to the company.
Shares rose nearly 4% in premarket trading, though the stock remains down about 70% this year.
Walgreens joins other struggling drugstore chains like CVS and Rite Aid, which face pressure from Amazon, big-box retailers, and shrinking prescription margins. CVS recently announced 2,900 job cuts as part of a $2 billion cost-cutting plan, highlighting the broader challenges facing the pharmacy industry.
