Urgent Statement from a Well-Known Chain: Closes 500 Stores in the United States!

Amid a difficult economic situation, Walgreens has confirmed that it will close 500 of its stores in the United States during 2025. This announcement is part of a broader plan to reduce the number of locations of the chain, which plans to close 1,200 stores in total over the coming years. This decision not only reflects Walgreens's struggle but also a worrying upward trend in the face of the economic challenges facing retail in the United States.

The Impact of the Closures on Walgreens

Walgreens has admitted that a quarter of its 8,700 stores in the United States are not profitable. Despite having exceeded Wall Street's expectations regarding its earnings, the company has not been able to avoid the problems plaguing the industry. Rising costs and competition from online retailers have severely affected its profitability.

Tim Wentworth, CEO of Walgreens, explained that the company is in the middle of a "turnaround" and that this process "will take time." Despite the closures, Wentworth was optimistic about the future, assuring that the measures taken will bring both financial and consumer benefits in the long term.

The Struggle to Stay Afloat

Walgreens's business model has been especially hit by the reduction in prescription reimbursements and growing competition. Additionally, many consumers have moved away from traditional pharmacies, seeking lower prices elsewhere. Although Walgreens led vaccinations during the Covid-19 pandemic, the boost that gave them has already disappeared and the company faces a tough battle to remain relevant.

The company is not the only one going through this type of crisis: its competitor, CVS, has also closed several stores. Rite Aid, another major chain, emerged from bankruptcy with a reduced presence of 1,300 stores. However, despite these challenges, Wentworth was confident that Walgreens can overcome this situation.

The Future of Walgreens in the United States

Despite the decision to close hundreds of stores, Walgreens remains one of the leading pharmacy chains in the United States. The company still owns around 6,000 profitable stores, which will serve as a base to continue operating and rebuild its image. Wentworth highlighted that this solid base will allow Walgreens to invest in the future and adapt its business model to new market demands.

The closures, which will begin to be implemented in 2025, are part of a broader strategy to restructure the company. Walgreens, like other large chains, faces a challenging landscape in an increasingly competitive market. It is possible that, after what happened in 2019 with the pandemic, this type of establishment has lost the trust of a percentage of consumers.