Pharmacy giant Walgreens plans to close 1,200 stores nationwide over the next three years, according to a company announcement on Tuesday. This decision comes in response to increased competition and retail theft, which has hit many major cities, including San Francisco and New York. The company says it will close 500 stores within the first year.
In recent months, Walgreens announced it would cut 300 stores, citing financial struggles. This new announcement marks a significant increase in store closures as the company continues its efforts to “optimize” its business. Many stores have struggled with profitability, with Walgreens revealing that 25% of its locations are failing to turn a profit.
CEO Tim Wentworth indicated that the company plans to make “imminent” changes. While the company saw some sales growth last quarter, it suffered a $3 billion loss due to its investment in CareCitrix, a Chinese pharmaceutical chain.
Walgreens has also been hit hard by retail theft, particularly in cities like New York and San Francisco. In these areas, theft rings have targeted stores, forcing many locations to lock up everyday items. Five Walgreens stores in San Francisco have already closed due to rampant crime.
Despite the closures, the company remains optimistic about its future. According to Wentworth, 6,000 of its 8,500 stores remain profitable. He stated, “We intend to invest in these stores over the next several years.”
States like Florida, Texas, Illinois, California and New York, which have the highest number of Walgreens locations, will likely be most affected by these closures.
