Walgreens To Close 1,200 Stores Amid Retail Crime Surge

Walgreens, one of the nation’s largest drugstore chains, is set to close approximately 1,200 stores across the US over the next three years. The closures, announced on Tuesday, are a response to growing competition in the pharmacy industry and increased retail crime, particularly in states like New York and California. Walgreens aims to reduce underperforming locations as it seeks to streamline operations.

In the first year alone, the company plans to shutter 500 locations. This move escalates a previous announcement to close 300 stores as part of a long-term strategy to optimize its business. The company has revealed that about 25% of its stores have not been profitable, prompting the drastic measure.

CEO Tim Wentworth outlined the company’s plan, describing the upcoming changes as “imminent.” Despite better performance in its last quarter, Walgreens still reported a $3 billion loss due to a declining value of its Chinese pharmaceutical venture, CareCitrix.

Retail theft has become a significant concern for the company. In states like California and New York, theft rings have led many retailers to lock up common items, such as toothpaste, in an attempt to combat the surge in crime. Some stores in major cities like San Francisco have already closed due to the overwhelming number of theft incidents.

While the closures are significant, Walgreens reassured investors that most of its 8,500 stores remain profitable. According to Wentworth, “This solid base supports our conviction in a retail pharmacy-led model that is relevant to our consumers.”

States most affected by these closures include Florida, Texas, Illinois, California and New York. As the company navigates the challenges of retail crime and increasing online competition, it remains committed to investing in its profitable locations.