Soon, it may be more difficult to go buy cough syrup in the middle of the night. Recently, Walgreens revealed roughly 25% of their stores would be closing within the next three years. And unfortunately, it is not because Americans are becoming healthier…
In late June, Walgreens stock dropped a staggering 20%…
This prompted an immediate response.
THE MOST SIGNIFICANT OF WHICH IS WALGREENS CLOSING A LARGE PORTION OF 8,600 OF ITS US LOCATIONS.
The corporation has tried to keep itself off the list of big chains closing. As recently as May, Walgreens marked down over 1,500 non-pharmaceutical items to lure shoppers back into stores.
Nonetheless, these efforts have proven fruitless in the current marketplace.
Walgreens CEO, Tim Wentworth, commented on the challenges of its business model in an analyst call:
“We continue to face a difficult operating environment, including persistent pressures on the US consumer and the impact of recent marketplace dynamics which have eroded pharmacy margins. Our results and outlook reflect these headwinds.”
Via CNN
The drugstore chain has not disclosed the exact number of locations affected. But, they have revealed the reasons why those storefronts will shut down…
What Are the Criteria For Walgreens Stores Closing?
There are three main reasons that these Walgreens stores will be closing…
- That drugstore is not profitable — obviously.
- The location is too close to another one.
- The store struggles with loss prevention.
In addition to these closures, Wentworth discussed other changes to existing pharmacies. These adjustments are mostly being made to the front-of-store sector as opposed to the prescription area.
Mainly, the chain removed eight national brands from their stores in favor of partners and in-store brands.
Like so many other companies, they keep slashing prices to appease cost-conscious customers. However, if this will keep other Walgreens stores from closing in the future is uncertain at this point.
Be Great,
GCTV Staff
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