Walgreens, the pharmaceutical chain, is facing the need to close 150 stores due to a decrease in demand for Covid-19 tests and vaccines. The company’s shares hit their lowest level in over a decade, prompting executives to implement cost-cutting measures. The closures are expected to be completed by August 2024. Walgreens attributed the decline in demand to the end of the pandemic and consumers’ reluctance to spend amid economic uncertainty. CEO Rosalind Brewer stated that changing market trends indicated a prioritization of value by consumers. The chain reported a 59% decline in profits in the fiscal third quarter. Along with the US store closures, Walgreens will also close 300 Boots locations in the UK. In total, the company has around 13,000 stores across the US, Europe, and Latin America. The news had a negative impact on the shares of competitors CVS Health and Riteaid. The closures are happening amidst a larger “retail apocalypse” where numerous brands are closing physical stores to compete with online retailers. This crisis has been exacerbated by rising crime rates in cities, making the operation of stores economically unviable. Downtown San Francisco, in particular, has seen a significant increase in crime and the closure of 95 retailers since the start of the pandemic.
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