Retailer with 224 Locations in Arizona Announces Mass Closures
If you've noticed that the world economy is experiencing growing pains, it's not your imagination. Many of the businesses we rely on are suddenly shrinking or reshaping their plans to adjust to major changes in how consumers purchase products and services.
Still reeling from the impact of the pandemic and the global shutdown, many traditional brick-and-mortar companies are learning how to navigate a world that has come to rely on online ordering and the virtual business model to replace traditional buying habits.
One of the largest pharmacy chains in the United States, with locations on nearly every corner in every city, recently declared plans to close some of its stores.
READ MORE: Popular Retailer With 26 Arizona Locations Plans to Close Stores
Closing Locations Across the Country
Pharmacy giant Walgreens announced it plans to shutter underperforming locations across the nation. The company has earmarked around 2,150 locations to close by 2027.
There are 224 Walgreens locations in Arizona alone. The threat of closure sounds the alarm for smaller communities that rely on the chain for everything from prescription drugs and over-the-counter medications to everyday supplies like gifts and personal products.
Why is Walgreens Planning to Close Stores?
Walgreens has seen a significant impact in sales as it struggles to compete with large retailers like Walmart. Recently, Amazon rolled out its online pharmacy service that "delivers to your door" and boasts Amazon Prime Member savings, directly competing with Walgreens for low-cost, recurring prescriptions.
READ: Will Walmart Close Arizona Stores This Year? What We Know
Reimbursement rates for prescriptions and rising operational costs are also impacting the company, adding to the factors for the change.
How Many Walgreens Locations Will Close in Arizona
Walgreens has not announced how many locations it plans to close in Arizona. However, it intends to shutter about 25% of its 8,600 stores nationwide. They plan to focus on underperforming stores, but details for which stores will be closed are not yet available.
The company is focusing on expanding healthcare services that online retailers can't compete with, namely on-site medical clinics. It plans to diversify enough to better meet consumers' needs.
Arizona residents in urban areas like Phoenix and Tucson may not see a substantial effect if they lose a few locations. However, rural areas and small towns may feel a deeper impact if their single store ends up on the closure list.
Sources: TIME | NBC News | AZ Central | Scrape Hero | Walgreens.com
LOOK: 50 Beloved Retail Chains That No Longer Exist
Gallery Credit: Madison Troyer
LOOK: Things from the year you were born that don't exist anymore
Gallery Credit: Stacey Marcus
More From K101
