Walgreens plans to shut down around 1,200 locations by 2027, including 500 stores in the next year, as it faces rising competition from online retailers and lower prescription reimbursements.
CEO Tim Wentworth is accelerating closures after revealing that about 25% of stores are unprofitable. Despite a 6% sales increase last quarter, the company reported a $3 billion loss tied to major writedowns.
Pharmacy chains like CVS and Rite Aid are also struggling, facing pressure from Amazon and big-box retailers like Target and Dollar General.
As costs rise and profits shrink, Walgreens is cutting prices and closing stores to stay competitive in a rapidly changing retail market.
