What is the real reason Walgreens is closing?
Asked by: Ericka Cruickshank Jr. | Last update: October 19, 2025Score: 4.8/5 (20 votes)
Why are so many Walgreens closing?
Walgreens and other chains overexpanded during the 1990s and 2000s to drive out competitors and draw more customers. They are now shutting down because of shifting consumer habits, competition and changes in the pharmacy industry.
Why is Walgreens having trouble?
Walgreens' problem, first and foremost, is that it's more of a traditional pharmacy than CVS. Walgreens has slipped behind CVS because it's smaller than CVS, giving it less scale to negotiate prices with insurers and other health care entities that pay for most of the prescriptions people pick up.
Is Walgreens going to go out of business?
Walgreens is closing approximately 1,200 stores across the United States as the pharmacy chain struggles with slumping consumer spending. The closures will occur within the next three years, starting with 500 stores being shuttered in fiscal year 2025, Walgreens announced Tuesday in an earnings report.
What is the controversy with Walgreens?
The government's complaint alleges that, from approximately August 2012 through the present, Walgreens knowingly filled millions of prescriptions for controlled substances that lacked a legitimate medical purpose, were not valid, and/or were not issued in the usual course of professional practice.
Why Walgreens And CVS Are Shutting Down Thousands Of Stores
Why is Walgreens losing money?
Walgreens said its quarterly loss includes costs “related to the footprint optimization program and an after-tax charge for fair value adjustments on variable prepaid forward derivatives related to the monetization” of its shares in the big drug distributor Cencora.
What is the lawsuit against Walgreens?
The Department of Justice is suing Walgreens for allegedly filling millions of prescriptions for controlled substances despite clear red flags they were illegal, helping fuel the deadly opioid crisis in the U.S.
What is the new name for Walgreens?
Walgreens Specialty Pharmacy and Walgreens Mail Service will be the new names for AllianceRx Walgreens Pharmacy and Walgreens community-based specialty pharmacies, effective August 1, 2024.
Is Walgreens in danger of bankruptcies?
Walgreens Boots' likelihood of distress is under 29% at this time. It has slight risk of undergoing some form of financial hardship in the near future. Chance of distress shows the probability of financial torment over the next two years of operations under current economic and market conditions.
What is the outlook for Walgreens?
Based on short-term price targets offered by 15 analysts, the average price target for Walgreens Boots Alliance comes to $11.13. The forecasts range from a low of $7.00 to a high of $15.00. The average price target represents a decline of 5.2% from the last closing price of $11.74.
What is going on with Walgreens pharmacy in 2024?
The thinning of Walgreens locations has been in the works. Walgreens said in October 2024 it planned to close about 1,200 underperforming stores across the U.S. as a strategy to offset declining profits resulting from low drug reimbursement rates and sluggish retail sales.
What is the Walgreens scandal?
Walgreens settles allegations of fraudulent billing with DOJ. The Illinois-based pharmacy giant has agreed to pay almost $107 million to settle claims it billed Medicare, Medicaid and other government programs for prescriptions that were never dispensed.
Why is CVS closing stores?
Within the last year, the company has also cut about 5,000 jobs, per The Wall Street Journal. The newspaper reported that when it spoke to a CVS spokesperson, they said the effort to pare down has been made “based on [the company's] evaluation of changes in population, consumer buying patterns and future health needs."
Who is buying out Walgreens?
Walgreens is reportedly exploring selling itself to private equity firm Sycamore Partners. It might be the right decision for the company, some experts say.
What stores are closing in 2024?
- Advance Auto Parts. ...
- American Freight. ...
- Big Lots. ...
- Buybuy Baby. ...
- CVS. ...
- Denny's. ...
- Family Dollar. ...
- JOANN Inc.
Why Walgreens is locking?
Why is Walgreens locking everything up? The backstory: Walgreens started placing some products under lock and key in response to a rise in shoplifting and other retail theft.
Are Walgreens going out of business?
When is Walgreens closing? Walgreens plans to close the 1,200 stores over the next three years. 500 stores will close in fiscal year 2025.
Did Walmart buy Walgreens?
No. Walgreen's was founded by Charles Walgreen in the early 1900's. Walmart was founded by Sam Walton in the 1950's.
Is Walgreens struggling financially?
Walgreens reported a loss of $265 million in its fiscal first quarter, which ended Nov. 30, as it executes an ongoing turnaround strategy and continues to struggle with lower retail sales.
Why is Walgreens dropping?
Walgreens has struggled lately due to declining prescription reimbursements and rising competition from Amazon and other discount stores.
Who owns most of Walgreens?
Walgreens Boots Alliance (NASDAQ: WBA) is owned by 59.06% institutional shareholders, 124.92% Walgreens Boots Alliance insiders, and 0.00% retail investors. Stefano Pessina is the largest individual Walgreens Boots Alliance shareholder, owning 638.29M shares representing 73.86% of the company.
What is the Walgreen controversy?
(AP) — The U.S. Justice Department is accusing Walgreens of filling millions of prescriptions in the last decade and more without a legitimate purpose, including for dangerous amounts of opioids, according to a lawsuit filed this week.
Why is Walgreens downsizing?
Walgreens is closing approximately 1,200 locations as the drug store chain struggles to contend with online competitors and declining prescription drug payments. By 2027, about one in seven Walgreens currently open will close its doors.
What pharmacy owns Walgreens?
Walgreens is the flagship U.S. brand of Walgreens Boots Alliance, Inc. (Nasdaq: WBA), an integrated healthcare, pharmacy and retail leader.