Once among the most secure among all retail giants, big-chain drug stores have had a rough few years and start to 2025 in particular.
Inflation and softening consumer power have seeped into profit in a way that extends toward much of retail, while the boost that drug stores got from Covid vaccinations has hit an income stream on which many had relied as the retail landscape changed.
Last October, Walgreens (WBA) confirmed plans to close over 500 stores across the country by the following August, as well as a total of 1,200 in the next three years.
Competitors CVS (CVS) and Rite Aid (RAD) have similarly been shuttering low-performing stores to bring down costs and streamline operations.
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“Sorry for any inconvenience this may cause”: Walgreens on closures
The latest stores that Walgreens is set to close in September include two locations in Colorado and one in Massachusetts — 950 S. Quebec Street and 6200 E. Colfax Ave. in Denver will close on Sept. 8 and 10, respectively, while 585 Washington Street in Boston will also shutter on Sept. 10.
The Denver stores are located in areas with a number of office and commercial buildings and have been underperforming amid lower office attendance. They are among the eight Denver and three Colorado Springs Walgreens stores that closed in Colorado state in the last year.
A separate location at 1601 Cross Link Road in Raleigh, North Carolina, had earlier already been slated for closure on Aug. 18. The drugstore chain has already closed at least four additional locations in the state.
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“This location will permanently close on September 8,” the website for one of the Denver Walgreens locations now reads. “We’re sorry for any inconvenience this may cause. If you have prescriptions at this location, learn about filling your Rx at another Walgreens.”
While these specific locations were in urban locations with other Walgreens and drugstores in close proximity, the thousands of closures slated in the coming years have raised concerns about “pharmacy deserts” in which residents of rural areas may lose access to the only nearby drug store.
“I do think we’re going to see more closures, and more closings in neighborhoods that need pharmacies most,” Dima Qato, a University of Southern California professor focusing on public health, said to Marketwatch.
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Walgreens struggled to cover costs of rent, staffing
The move also comes after Walgreens agreed to an acquisition by private equity firm Sycamore Partners for $10 billion back in March and is now set to go private as it continues down its path of trimming and consolidation.
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A Walgreens spokesperson spoke of “increased regulatory and reimbursement pressures” that have “impacted ability to cover the costs associated with rent, staffing, and supply needs.”
“It is never an easy decision to close a store, and we know how important they are to the communities we serve and therefore do everything possible to improve their performance,” the spokesperson said in a further statement on the earlier closures. “When closures are necessary, we will work in partnership with community stakeholders to minimize customer disruptions.”
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