TOMS RIVER, NJ – Walgreens is set to close up to a quarter of its 8,600 stores across the United States, impacting roughly 2,150 locations. The decision was announced by CEO Tim Wentworth, who cited several reasons for the closures, including non-profitable locations, proximity issues between stores, and increased theft.
The company has recently closed its location in Jackson Township, on South Hope Chapel Road.
During a discussion with the Wall Street Journal on June 27, Wentworth highlighted the unsustainable nature of the current pharmacy model, pointing out a significant shift towards online prescription services. This change has been reflected industry-wide with competitors like CVS, which is also closing pharmacies in select Target stores, and Rite Aid facing similar challenges due to lower reimbursement rates for prescription drugs.
The move is a response to evolving consumer habits, including a decline in in-store prescription pickups and increased price sensitivity. According to CNN, Walgreens’ profitable operations are concentrated in 75% of its stores, prompting a critical review of the remaining 25%.
According to an article in Good Housekeeping, that means as many as 2,150 stores could be on the chopping block.
This could lead to significant store closures if performance does not improve, although a specific number of closures has not been finalized.
Walgreens representatives have described the planned closures as “significant,” indicating a major shift in strategy for the pharmacy giant as it adapts to changing market dynamics and consumer preferences.
