Walgreens, a major national pharmacy chain, announced on October 15 that it will close 1,200 stores over the next three years. This move comes as the company faces declining consumer spending and reduced drug reimbursement rates, which have significantly impacted its operations.

Along with competitors like CVS and Rite Aid, Walgreens has been struggling with financial pressures as consumers cut back on expensive groceries and prescription drug sales slow. As a result, Walgreens' stock has plummeted to its lowest point in 30 years, dropping by 65% this year, making it one of the worst-performing stocks in the S&P 500 index.

Founded in 1901 in Chicago, Walgreens is one of the most well-known retail chains across the U.S., with over 8,000 stores nationwide as of August 31, 2023. However, the company has been facing financial difficulties in its core pharmacy business for several years, and competition from large online pharmacies like Amazon and local neighborhood pharmacies has intensified.

Just a year ago, Walgreens had already announced plans to close 150 U.S. stores and 300 U.K. stores due to declining sales, particularly as demand for COVID-19 vaccines dropped.

Walgreens has projected adjusted earnings per share of $1.40 to $1.80 for the 2025 fiscal year, which is lower than the previously anticipated $1.73 per share.

By Hwandong Cho, Reporter

<Hwandong Cho>