Walgreens has announced the closure of 10% of its locations, which is approximately 1,200 branches nationwide. With the increasing popularity of mail-in prescriptions, online pharmacies and CVS in retail stores, Walgreens has long since lost its near monopoly on prescription fulfillment.

This Tuesday, Walgreens Boots Alliance (the parent company of Walgreens, Duane Read and Boots) released a public statement announcing its plan to close more than a thousand of its locations. Over the next three years, American shoppers who have relied on Walgreens for their healthcare needs will likely face the closure of their nearest drugstore.

Official statement from Walgreens

Jim Cohn, spokesman for the Walgreens Boots Alliance, said Walgreens will close 500 of its stationary pharmacies by the end of the year August 2025. With more than 12,000 locations in the US, Europe and South America, it is not yet known exactly which locations will be affected by the massive closure.

Tim Wentworthcurrent CEO of Walgreens Boots Alliance, stated, “It will take time, but we are confident it will provide significant financial and consumer benefits in the long term.”

Assumption of his role as CEO in October 2023Tim Wentworth joined the company at a challenging time. Walgreens was already struggling to transition from a traditional retail pharmacy to a broader healthcare provider. The CEO had previously announced aa as a cost-cutting strategy billion dollars Value of closing locations.

Only in the US market did Walgreens’ sales decline 4.3% in the last three months. Due to the lower demand With demand for COVID-related products and pressure from increasing competitors, Walgreens has felt the huge decline as trends in the healthcare market change.

This is not a good outlook for investors who are concerned about the NASDAQ stock market. While it remains under the ticker symbol WBA in the S&P 500Retail analysts are cautious. Neil Saundersspecializing in GlobalData, explained that “it was another terrible quarter for Walgreens and one that caps a fiscal year full of problems and turmoil.”

The data analyst points out the crucial mistakes Walgreens made lose his position as Americans’ favorite drugstore: “Walgreens spent years building (…) acquisitions while completely neglecting the fundamentals of its stores and retail stores.”

Walgreens: an optimistic look into the future

Walgreens recently reported on a Loss of $3 billion. For context, the company only lost $180 million during the same period last year. Walgreens is struggling more than ever, to say the least.

However, the board has stated that Walgreens actively works with insurance companies to ensure they receive a fair margin percentage. The company is also negotiating with several pharmaceutical companies direct partnerships. This set of strategies was enough Investors optimisticas Walgreens (WBA) stock rose 4% following the press release.

The first years of Walgreens

Walgreens was founded in 1901 by Charles R. Walgreen. The first drugstore opened in 1901 Chicago, Illinoisat the corner of Bowen Avenue and Cottage Grove. The shop was still small back then Neighborhood Pharmacynot only offers customized medications, but also a lemonade fountain.

Walgreens soda fountain became famous for its Malted milkshakeswhich helped attract more customers. We can only look back and be jealous of the customers who picked up a prescription and drank a nice fizzy lemonade before heading home. Maybe Walgreens should bring this feature back, at least at the locations that aren’t closing until 2027. Who knows, maybe the company needs a milkshake parlor to boost sales again.

In the meantime, we’ll have to make do with their current services: prescription refills, vaccinations, health appointments, photography services, and everyday essentials like cleaning supplies. It doesn’t sound as fun as a soda dispenser, but it’s an essential part of Americans’ lives.