Future Looks Bleak for the 400+ Walgreens in New York State

Future of Walgreens in New York State

It may be time for shoppers to find a new convenience store as problems continue for Walgreens.

Earlier this year, Walgreens announced that many of its stores are unprofitable, forcing them to close at least a thousand locations over the next three years. On Tuesday, the company announced it would close 300 stores, approved under a previous cost-cutting plan.

According to the New York Post, Walgreens said that it will close the doors of 1,200 stores over the next three years, including 500 stores alone, in 2025.

1 in 4 Stores Unprofitable

The Chicago-based pharmacy chain has around 8,700 locations nationwide, and they disclosed to analysts on Tuesday that "one in four of its stores are unprofitable."

In June, Walgreens CEO Tim Wentworth told the Wall Street Journal that the closures would focus on locations that aren't profitable, too close to each other, or struggling with theft.

Things are not much better for Walgreen's rivals. According to sources, CVS recently announced a three-year plan to close 900 stores, while Rite Aid Corp. announced plans to trim its store count down to about 1,300 locations.

What Does this Mean for the 470 Stores in New York State?

Currently, Walgreens has 470 stores in New York State, the fifth-most in the country., but the company has seen consumer spending diminish. At the same time, inflation continues to increase, and low drug reimbursement rates make for a less profitable business model.

The drugstore giant didn't say where the store closings would occur, but it said all of the stores closing were located in the U.S.