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algreens is moving forward with plans to reduce its retail presence by closing 1,200 stores, according to its third-quarter earnings report. This decision follows an earlier announcement in June that the company would be closing some underperforming locations. Approximately 500 of these closures will occur before September 2025, but specific areas affected have not been disclosed.

    The company prioritizes owned properties with poor-performing stores or expiring leases for closure. With over 8,000 Walgreens stores in the US, only about 6,000 are profitable, according to CEO Tim Wentworth. The company reported operating losses of $14 billion so far this year, a 105% increase from last year's losses.

    The main causes cited for these losses were inflation, reduced spending, and lower prescription reimbursement rates. This round of closures, combined with tests of smaller store formats, puts Walgreens in line with other major drugstore chains navigating their future retail footprints. CVS is nearing the end of its three-year plan to close nearly 1,000 stores, while Rite Aid has significantly reduced its portfolio since filing for bankruptcy last year.