Walgreens to close 1,200 stores as US pharmacies struggle to define a new role
By TOM MURPHY, AP Health Writer
Walgreens is planning to close around 1,200 locations, as the drugstore chain and its rivals struggle to define their role for U.S. shoppers who no longer look to them first for convenience.
Drugstores that once snapped up prime retail space in towns and cities across the country are in retreat. They’ve been battered by shrinking prescription reimbursement, persistent theft, rising costs and consumers who have strayed to online retailers or competitors with better prices.
The boost they received from taking the lead on vaccinations during the COVID-19 pandemic has long since faded.
Walgreens’ announcement Tuesday morning comes as rival CVS Health wraps up a three-year plan to close 900 stores and Rite Aid emerges from bankruptcy, whittled down to about 1,300 locations.
As the companies retract, they raise concerns in many communities about access to health care and prescriptions.
Drugstore leaders and analysts who follow the industry say smaller versions of these chains have a future in U.S. retail, but they’re still trying to understand how that will play out.