Walgreens Is Closing Over 1,000 Stores by End of 2027

Drugstore chain Walgreens is closing 1,200 stores within the next three years, 500 of which will be gone by the end of fiscal 2025. Earlier this year, the company announced it was closing a number of locations, but it did not give an official number until now.

The Walgreens store closings are coming despite fourth-quarter earnings that beat analysts’ expectations. Revenue reached $37.55 billion, just under $2 billion more than Wall Street predicted.

For the quarter ending Aug. 31, Walgreens Boots Alliance revealed a $3 billion net loss, or $3.48 per share. To put it in perspective, the pharmacy giant reported a net loss of $180 million ($0.21 a share) for the same period in 2023.

For fiscal 2025, Walgreens estimates earnings per share to range from $1.40 to $1.80 per share. Revenue will likely fall between $147 billion and $151 billion.

Walgreens Store Closings Part of a Bigger Plan

When Tim Wentworth took the CEO position last year, he promised changes for the company, which included a plan to cut costs by $1 billion and close unprofitable stores. Also, Wentworth initiated the removal of several mid-level managers and introduced a strategy to integrate AI into the supply chain for greater efficiency.

“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,” Wentworth said in the company’s earnings report.

To boost sales of non-prescription items, Walgreens cut prices on over 1,300 items to help customers weary from inflation. The reductions were on products in several categories, including vitamins, dental products, and snack foods.

Walgreens has about 8,700 locations in the U.S. The company has not yet announced specifically which stores will be shuttered. While the number of employees affected is unknown, Walgreens intends to keep as many employed as possible.

On the company’s quarterly earnings call, Wentworth said that the closures will lead to a “healthier store base” and “enable us to respond to shifts in consumer behavior and buying preferences.”