Walgreens, the nation’s second-largest chain of pharmacies, continues to reduce its retail footprint as part of a larger reorganization. The chain announced it is closing several dozen stores in May 2025, with others to close in the months ahead. These store closures are emblematic of sustained financial struggles, changing consumer trends, and realignment efforts due to Walgreens’ acquisition by private equity group Sycamore Partners. This article takes into account recent closure announcements, the effect on their communities, and the driving forces behind them.
Recent closure announcements
Walgreens is shutting stores in at least 13 states in May 2025, and some of the locations have been confirmed in California, Colorado, Florida, Indiana, Maryland, New Jersey, New York, North Carolina, and Texas. For instance, two Jacksonville, Florida, locations will close on May 19 and June 26, respectively. There are also two other closings, including a Colorado store at 5 W Jewell Lakewood, which will close on May 22 and a Dallas, Texas, store at 4100 W Camp Wisdom Road, which will close on May 21. There are two closings in the New York City area: a store at 48th Street in Brooklyn and one at 1800 Fitzgerald Drive in Middletown.
These closures are part of an larger strategy to close 1,200 stores within three years with 500 closures in fiscal year 2025 alone. The company emphasized that the closed stores are underperforming or in areas where lease renewals are being considered.
Impact on communities
Walgreens store closures disproportionately affect disadvantaged communities, especially where pharmacies are in short supply. Nine Massachusetts stores closed earlier this year, most in impoverished communities, leaving them with very little access to prescription medication and immunizations. Likewise, the closing of two dozen stores in San Francisco’s Mission District left long lines at the only remaining store, stretching customers who depend on in-person services.
Walgreens instructed customers to switch prescriptions to nearby pharmacies or have them delivered. These solutions will not address the needs of geriatric patients or people without vehicles. Wrecking neighborhood pharmacies dislocates employment with it, inflicting economic hardship on already beleaguered communities.
Financial pressures driving closures
Walgreens’ financial trouble has worsened in recent years. Walgreens posted a fourth-quarter net loss of $3.3 billion in 2024, driven by falling prescription reimbursement levels, increased operating expenses, and competition from online stores. Gross margin has been falling as a result of inflationary forces and rising shoplifting, leading to additional cost-saving initiatives.
CEO Tim Wentworth positioned the closures as a plan to “stabilize the retail pharmacy” by moving out of money-losing markets and re-investing in higher-performing stores. The company’s fiscal 2025 second-quarter earnings report reported a 4.1% year-over-year sales increase to $38.6 billion but growth was eclipsed by $4.2 billion of non-cash charges for impairments against underperforming assets.
Private equity acquisition and its risks
In March 2025, Walgreens Boots Alliance reached a $10 billion takeover deal with private equity firm Sycamore Partners, which has a reputation for leveraged buyouts. The transaction has sparked concern among lawmakers, such as Senator Elizabeth Warren, who cautioned that Sycamore’s leveraged acquisition may lead to further layoffs and fewer healthcare services.
Retail chain bankruptcies Staples and Talbots are on Sycamore’s resume, which is concerning that it may have to do the same with Walgreens. The company’s heavy dependence on expense reduction to fund acquisition debt could accelerate store closures and employee reductions especially in Massachusetts and California.
Looking ahead
Walgreens has not eliminated the possibility of closures subsequent to May and June 2025, leaving customers and employees in uncertainty. Walgreens’ acquisition of Sycamore Partners is to be finalized by the end of 2025, but regulatory approval and public pressure can slow down the process.
Currently, Walgreens remains focused on its asset optimization and expansion in higher-margin business, including U.S. Healthcare, which has grown in the second quarter. But for how long such strategies will hold is uncertain because the retail pharmacy business is bedeviled by systemic problems. Affected customers are asked to check the status of their local store through Walgreens’ website and make other arrangements for health care providers.
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