Walgreens, one of the largest pharmacy chains in the United States, has surprised San Francisco residents with the imminent closure of 12 branches. These closures, scheduled between February 24 and 27, 2025, are part of a broader plan by the company to reduce operating costs and improve its profitability for the future. Below, we explain the reasons behind this decision, how it will affect the local community and what measures are being taken to ensure that customers can continue to access their medicines and healthcare products.
Mass closure: a national strategy
The news is not limited to California. Walgreens announced in 2024 its intention to close nearly 1,200 stores over a period of three years, with the aim of optimizing resources and reinforcing the stores that perform best. According to information provided by the company itself, around 500 stores will close their doors during the 2025 fiscal year, which ends in August, while another 700 could do so in 2026 and 2027.
Timothy Wentworth, CEO of Walgreens Boots Alliance, said in a conference call with investors that 25% of the stores in the chain do not fit in with the long-term growth strategy. The company is therefore seeking to concentrate its efforts on more profitable branches and on an online service that is gaining ground against the competition.
The reasons for the closure of several branches
According to an official statement, the main factors driving this restructuring process are:
- Increase in operating costs: The rising cost of rents and services has forced the chain to rethink the viability of many of its stores, especially in areas with high inflation rates and high property costs.
- Online competition: With the arrival of giants such as Amazon in the pharmaceutical market, e-commerce is changing consumer habits. Many customers are choosing to buy medicines and health products over the Internet, reducing traffic in physical stores.
- Lower drug reimbursements: Reimbursement rates have declined in recent years, directly impacting retail pharmacy profit margins.
- Changes in consumption: The slowdown in retail sales, coupled with the possibility that consumers will look for cheaper options, has led to a reduction in revenue in various establishments in the chain.
These are the 12 pharmacies closing in San Francisco
The closure of Walgreens pharmacies in the Californian city will be concentrated in the following locations:
- 1201 Taraval St.
- 3201 Divisadero St.
- 1363 Divisadero St.
- 825 Market St.
- 1750 Noriega St.
- 5280 Geary Blvd.
- 1524 Polk St.
- 1301 Franklin St.
- 1189 Potrero Ave.
- 135 Powell St.
- 1630 Ocean Ave.
- 5300 3rd Street
The definitive closure of these premises will be completed between February 24th and 27th.
What will happen to customers and their medicines?
Walgreens has reiterated that it understands the impact this measure will have on the local community. Therefore, it has assured that:
- Prescriptions will be transferred to other nearby branches or to associated providers, in order to avoid interruption in the supply of medicines.
- Customers can check the status of their prescriptions on the official Walgreens website and receive information about the nearest pharmacy that will be operating after the closure.
- The company will strengthen its online service, offering a home delivery option for those who are unable to travel to more distant stores.
These solutions seek to minimize the negative effect on patients, particularly the elderly or those with limited mobility, who depend on having a pharmacy nearby.
A scenario of profound changes in the sector
Traditional pharmacies in the United States are experiencing a complex panorama. In addition to Walgreens, other renowned chains have also been forced to rethink their strategies, closing stores in areas where fixed costs far exceed income. This trend is linked to:
- The rise of e-commerce, which simplifies the purchase of medicines and health products, offering competitive prices and fast shipping.
- The need to reduce the tax burden, as fewer stores can translate into lower tax liabilities and operating expenses.
- The search for profitability, focusing on stores with high sales volumes and on optimizing the supply chain.
What to expect for 2025 and beyond?
Walgreens’ restructuring does not end in February. As confirmed by the company, the goal is to close approximately 500 branches before the end of the 2025 fiscal year. Although the news is disconcerting for many residents, the chain says its intention is to strengthen its presence in strategic locations and enhance its online sales channels. Don’t forget that you can be informed about this and other current section in the specialized section of this digital newspaper.
