Walgreens has announced plans to shut down 1,200 stores across the US over the next three years, starting with 500 closures in the first year. This decision comes as the pharmacy chain faces increasing competition and a rise in retail crime. In particular, major markets such as New York and California have seen a surge in theft rings, forcing retailers to lock up everyday items and close stores.
Walgreens previously planned to close 300 stores in response to financial difficulties but has now expanded its plans. Around 25% of its stores have been unprofitable, according to company officials.
CEO Tim Wentworth stated that “imminent” changes are needed. Despite improved sales in the last quarter, Walgreens reported a $3 billion loss, primarily due to its investment in CareCitrix, a Chinese pharmaceutical chain.
Retail theft has been a growing problem for Walgreens. In cities like San Francisco, stores have been forced to close due to frequent theft. These issues have contributed to the company’s decision to shutter more locations as it seeks to stabilize its business.