Closing dates for several additional Walgreens locations have been confirmed this month.
The update comes as the retailer continues mass closures over the next three years.
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It's all part of a $1 billion cost-cutting program, which Tim Wentworth, CEO of Walgreens Boots Alliance, confirmed in October.
By the end of this initiative, nearly 1,200 Walgreens locations had been eliminated in the shrinking of its retail footprint, and several mid-level executives were scheduled to be fired.
Walgreens currently has about 8,500 locations nationwide.
Wentworth intends to restore Walgreen's market capitalization, which reached a high of $100 billion in 2015.
Walgreens is only worth $7.5 billion in 2024, which is a significant decline.
“We recognize that where we are is a transformation,” Wentworth noted on a June earnings call.
“This transformation will take time, but we are confident that it will deliver significant financial and consumer benefits in the long term.”
He also added that about 25% of Walgreens stores “are not currently contributing to our long-term strategy.”
The doors close quickly
About 500 closures are scheduled to take place in 2025 as part of cost cuts, and at least 70 closures have already been completed as of November 30, 2024.
The CEO said Walgreens will also “significantly ramp up the pace” of closings for 2025, and it appears to be working, with shares up about 35% from where they were in the first quarter of 2024, according to USA Today.
While dates for most have yet to be announced, at least 23 final days of operation have been confirmed throughout February, with numbers reaching 12 in states like California.
Wentworth also stressed that it would be stronger for stores to remain open after this year's sales.
“When you look at our stores, the stores that weren't on the closing list, we see those stores that are materially stronger, but not where they need to be, but they are materially stronger than the stores that we are closing,” he said.
It's also possible that Walgreens will soon be purchased by a private equity firm.
Walgreens locations will be closing soon
At least 23 Walgreens locations have announced February closing dates amid about 500 planned closures in 2025.
- Augusta, Georgia (February 20)
- Washington Road and Bobby Jones Highway
- Chicago, Illinois (February 17 to 27)
- 7111 S. Western Avenue
- 4005 W 26th Street
- 9148 S. Commercial Avenue
- 3405 S. King Drive
- 7109 S. Jeffrey Boulevard
- Rockford, Illinois (February 19)
- Oakland, California (February 24 and 27)
- 301 E 18th Street
- 5055 Telegraph Street
- San Francisco, California
- 1201 Traval Street
- 3201 Divisadero Street
- 1363 Divisadero Street
- 825 Market Street
- 1750 Noriega Street
- 5280 Geary Blvd.
- 1524 Polk Street
- 1301 Franklin Street
- 1189 Potrero Street.
- 135 Powell St
- 1630 Ocean Street.
- 5300 Third Street
- Tallahassee, Florida (February 25)
- Quincy, Massachusetts (February 27)
Credit: USA Today
Is a purchase imminent?
Sycamore Partners and Walgreens Boots Alliance recently discussed details, though nothing has been confirmed, according to the Wall Street Journal.
If this happens, shoppers could see major changes in Walgreens store operations and the company will be taken out of the public market.
It's also not the first time Walgreens Boots Alliance has considered an acquisition.
Another private equity firm, KKR, almost bought it in a $70 billion deal in 2019, the Financial Times reported.
The agreement would have been historic as Walgreens' market value was approximately $50 billion at the time.
Walgreens has also taken some criticism from customers over the past year.
Recently, Wentworth admitted the controversial policy had backfired for shoppers.
Some shoppers have also cited long self-checkout lines causing hassles.
