One of the largest drugstore chains in the country, Walgreens, will close a significant number of its stores soon, according to recent reports. Walgreens Boots Alliance has already pulled the shutters of several stores nationwide, and more are expected to follow in the coming months.
Highlights
- A large number of Walgreens stores are expected to close down in the coming months.
- Thefts, shifts in consumer behavior and issues with profitability are among the reasons for the store closures.
- The company is currently restructuring to deal with the struggles facing the business.
Walgreens’ Plan to Adapt to Changes In the Retail Market
Walgreens is undergoing a major restructuring in order to adapt to the rapidly changing retail market. One of the radical steps the chain is taking is scaling back its brick-and-mortar operations.
Reports say that a considerable number of stores among the 8,363 Walgreens locations in the US will be closed. Some reports say that up to 1200 of the most underperforming stores will be shuttered by 2027. Around 500 locations among them will cease operations by the end of 2025.
In another move to stabilize the business, Walgreens plans to go private, according to reports. Walgreens also plans to reduce its equity stake in VillageMD to the point that it is no longer the majority shareholder.
Walgreens customers who are worried about their local stores closing can check the Walgreens Store Closure page for the latest updates. The page also outlines how to fill the prescriptions in case a store closes.
New Services for Changing Times
Walgreens has come up with virtual pharmacy care that is currently available in 30 states. Visitors to pharmacies can also avoid waiting in line by making use of the digital and virtual check-in options.
Concierges who will be of assistance to customers have been introduced at the front of several stores, as part of a customer care initiative. Furthermore, Walgreens is rolling out its own branded merchandise to ensure customer loyalty.
Causes of the Store Closures
Walgreens has decided to close down its stores due to a myriad of reasons. Some of the major issues that the chain is facing with its stores are as follows:
- Rising Retail Theft: Many of the Walgreens physical stores, which are very often located at urban city centers, are vulnerable to theft in the context of the rising crime rates in such areas.
- Changes in Consumer Behavior: Another major contributor to the decline of sales at physical stores is that many customers resort to online sources to purchase almost everything, including healthcare products.
- Profitability Issues: Walgreens has also been struggling as the profit that comes in from prescription reimbursements has been going down. On top of that, the chain over-expanded to many pricey locations, which has taken a toll on the profit margins as well.
Drugstores like Walgreens need to maintain a footprint of locations, as many Americans still rely on those stores to make their purchases. However, given the troubles with maintaining such stores, the company will have to make innovations so that it can sustain itself and continue growth.
