Walgreens is set to close five stores in Chicago by the end of February, marking the latest round of closures as the company continues its efforts to overhaul its business operations. These closures, scheduled between February 17 and 27, follow a wave of store shutdowns announced last October as part of a larger strategy aimed at reshaping the company’s future.
Tim Wentworth, CEO of Walgreens Boots Alliance, has outlined plans to streamline the retail pharmacy chain as part of a broader turnaround initiative. This strategy includes the reduction of executive roles and a $1 billion cost-cutting program to improve profitability and operational efficiency.
The closures come amid mounting pressure from rising regulatory and reimbursement challenges, which are making it increasingly difficult for the company to cover costs associated with rent, staffing, and supply management.
In addition to these five Chicago stores, Walgreens has previously announced a total of 1,200 closures across the United States by 2027, with 500 locations set to shut down in 2025 alone.
While the decision to close stores is never easy, Walgreens has assured the public that it is committed to minimizing the impact on affected communities. A company spokesperson stated, “Our retail pharmacy business is central to our future, and we’re doing everything possible to improve the performance of each store. When closures are necessary, like the ones in Chicago, we work closely with local stakeholders to minimize disruptions to our customers.”
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Employees at the closing stores will mostly be redeployed to other locations within the company.
Financial Struggles Amidst Restructuring
Despite a 7.5% year-over-year increase in sales for the first quarter of 2025, Walgreens reported a net loss of $265 million, a significant jump from the $67 million loss in the same period last year. The company cited higher operating losses as the primary reason for the deeper deficit.
Wentworth expressed optimism about the company’s long-term strategy, emphasizing that stabilizing the retail pharmacy segment, optimizing the store footprint, and addressing reimbursement models are key areas of focus. “While our turnaround will take time, we are encouraged by early progress in executing our 2025 priorities,” he said.
As of August 2024, Walgreens operated more than 8,000 locations across the country. However, with closures slated to continue through 2027, approximately one in seven Walgreens stores will be shuttered during this period.
In addition to the Chicago closures, the company recently revealed plans to close 12 stores in San Francisco and three in Sacramento by the start of next month.
