Walgreens to Close 1,200 U.S. Stores to Streamline Business

SAN ANGELO, TX - Walgreens announced Tuesday that it will close 1,200 stores across the U.S. over the next three years in a bid to stabilize its struggling domestic operations.

The closures include 300 stores already slated for shutdown under a previous cost-cutting initiative.

The company, which operates around 8,500 stores nationwide, said about 500 of the closures will occur within the current fiscal year. Walgreens did not specify which locations will be affected, though all closures will be within the U.S.

CEO Tim Wentworth stated that fiscal 2025, which began last month, will serve as a “rebasing year” aimed at resetting Walgreens’ financial foundation. Wentworth stated that the restructuring will lead to long-term benefits for both the company and its customers.

Walgreens has faced challenges from increasing operational costs and limited reimbursement rates for prescriptions, an issue that has plagued the drugstore industry. The company has also pulled back from previous plans to expand its healthcare services, including the possibility of selling part or all of its VillageMD clinic business.

Additionally, Walgreens reported a $3 billion net loss in the final quarter of 2024, despite surpassing Wall Street’s earnings expectations. The company projects adjusted earnings for fiscal 2025 to fall between $1.40 and $1.80 per share, with the U.S. pharmacy division seeing declines offset by international and healthcare growth.

Shares of Walgreens rose by 5% following the announcement, though the stock remains down by two-thirds for the year, closing at $9 on Monday.