Walgreens Closures Will Total 500 Stores in 2025

Walgreens will shutter a total of 500 locations in 2025 as part of a $1 billion cost-cutting strategy.

In October 2024, Walgreens announced plans to close approximately 1,200 underperforming stores over the following few years. Right now, there are around 8,500 Walgreens stores in the United States, but Walgreens has not yet announced a full list of which stores will be closing by the end of 2025, the company said in an email to The U.S. Sun.

Tim Wentworth, CEO of Walgreens Boots Alliance, discussed how the company would go about fiscally restructuring during this uncertain time during an earnings call last June. The company closed 70 stores in its first quarter of the fiscal year 2025. Wentworth claims the closures will lead to a “healthier store base” and “enable us to respond to shifts in consumer behavior and buying preferences.”

“Our financial results in the fiscal fourth quarter and full year 2024 reflected our disciplined execution on cost management, working capital initiatives and capex reduction. In fiscal 2025, we are focusing on stabilizing the retail pharmacy by optimizing our footprint, controlling operating costs, improving cash flow, and continuing to address reimbursement models to support dispensing margins and preserve patient access for the future,” Wentworth stated last October, per Forbes.

Walgreens Will Be Closing Over 500 Stores in 2025: Is Yours One of Them? https://t.co/kWuC2O8dek

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Wentworth added, “Fiscal 2025 will be an important rebasing year as we advance our strategy to drive value creation. This turnaround will take time, but we are confident it will yield significant financial and consumer benefits over the long term.”

The full list of store closures will continue to be made public through the remainder of the current financial year. GO Banking Rates has compiled a comprehensive list of stores that have already permanently closed in 35 states throughout the U.S. this year.

Why Is Walgreens Shutting Down Some of Its Stores?

​Walgreens is closing stores due to several financial and operational challenges. Per Axios, Walgreens has faced declining prescription reimbursements, which have impacted store profitability. Plus, retail competitors like Amazon, Walmart, and other places where health and wellness products can be purchased for less have intensified market competition.

Customer preference for online shopping has led to decreased foot traffic in physical stores. Per Trepp, Walgreens continues to face operational challenges such as understaffing and increased theft. Customers have to deal with merchandise locked up behind security cases, which is a deterrent from making purchases as they have to wait for a case to be opened by an employee. This makes a quick visit take longer than expected. 

By closing underperforming stores, Walgreens aims to streamline operations, reduce costs, and focus on more profitable areas to remain competitive in the evolving retail pharmacy landscape.