The news: Walgreens plans to close 1,200 stores, or about 14% of its physical footprint, over the next three years as part of an ongoing cost-cutting strategy.
- Announced during the retail pharmacy chain’s fiscal Q4 and full-year earnings, some 500 closures will occur over the next 12 months.
- Despite a net loss of $3 billion in fiscal Q4, market reaction to the news was positive, with Walgreens’s shares jumping about 12% as of the time of writing.
Zooming out: Walgreens’s announcement comes as healthcare companies pursue different avenues amid their pharmacy businesses’ struggles.
- After closing 800 stores, Rite Aid recently emerged from bankruptcy and will now operate as a privately owned company.
- From 2022 to 2024, CVS Health closed about 900 stores, representing nearly 10% of its US locations.
- CVS recently announced that its specialty infusion service, Coram, is discontinuing certain offerings and plans to close or sell 29 regional pharmacies in the coming months.
Why it matters: Retail pharmacy store closures threaten consumer access to needed medications.