LOS ANGELES, CA – Walgreens has announced plans to close five stores in Southern California by the end of March, citing financial pressures linked to regulatory changes and reimbursement policies. The closures are part of a broader effort by the company to reduce costs and restructure its operations.
The affected locations include stores in Whittier, downtown Los Angeles, Orange, Placentia, and Stanton. The company said approximately 93 employees could be impacted by the decision.
In a statement, Walgreens attributed the closures to “increased regulatory and reimbursement pressures” that have made it more difficult to cover costs related to rent, staffing, and store operations.
“It is never an easy decision to close a store,” said Marty Maloney, Walgreens’ director of media relations. “We know that our stores are important to the communities we serve, and we will do everything possible to improve store performance. When closures are necessary, we work in partnership with community stakeholders to minimize customer disruptions.”
The move is part of Walgreens’ larger “footprint optimization program,” announced last year, which aims to close approximately 1,200 locations over three years. The company said around 500 of those closures will occur in fiscal year 2025.
Walgreens has not provided details on how it will assist affected employees or customers who rely on the closing locations for prescriptions and other healthcare services. The company said it will work with patients to transfer prescriptions to nearby locations to minimize disruptions.
The closures reflect ongoing challenges in the retail pharmacy sector, where companies have struggled with shrinking profit margins due to lower reimbursement rates from insurers and government healthcare programs. Several major pharmacy chains have announced store closures in recent years, citing similar financial constraints.
