2nd Largest Pharmacy Chain In The U.S. Closing 1,200 Stores
Sadly, several national chains have recently announced they're closing locations across the country. Recently, we learned that Dickies Barbeque Pit, which currently has 4 Minnesota locations and 2 in Wisconsin, had closed about 100 locations nationwide.
More disappointing news arrived this week when Walgreens, a major U.S. pharmacy and retail chain, announced it would be closing 1,200 stores in the country. Walgreens is well represented in Minnesota and Wisconsin, with hundreds of locations currently open.
Right now, Walgreens Boots Alliance is the second largest pharmacy chain in the United States by retail sales, with about $105 billion reported in 2023.
Walgreens Lays Out The Plan To Close 1,200 Stores Nationwide
In its October 15 announcement, Walgreens said the closings are reportedly necessary to complete the company's plan downsize ahead of what they believe will be a turnaround, as it faces the reality of retail competition and lower prescription payouts.
Walgreens notes that a whopping 1 in 4 of its 8,700 locations are unprofitable.
The plan is to close 1,200 stores over the next three years, with 500 of the store closings occurring in the next 12 months.
Walgreens reportedly announced the closures as part of its fiscal fourth-quarter and full-year earnings, which beat Wall Street's expectations. Walgreens CEO Tim Wentworth acknowledged the company was working through a plan to turn things around, but that it would "take time."
Walgreens isn't the only major pharmacy and retail chain facing challenges to its current business model. CVS Health Corporation, the largest pharmacy chain in the United States by both retail sales and prescription drug market share, announced earlier this year it was closing hundreds of stores after evaluating changes in population, consumer buying patterns, and future health needs.
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While Walgreens has yet to announce exactly which stores it will be closing, it would be shocking if Minnesota and Wisconsin didn't have store closures, based on the hundreds that are currently open between the two states.