October 15, 2024, WASHINGTON, DC – Walgreens Boots Alliance (WBA) today announced plans to close approximately Walgreens 1,200 stores, representing roughly 10% of its global locations, as part of a larger strategy to streamline operations and bolster profitability. The closures will take place over the next three years and 500 will shutter in the U.S. by August 2025.
Dr. Kimberlee Josephson, a fellow with the Consumer Choice Center and an Associate Professor of Business Administration at Lebanon Valley College, responded to the unfortunate news:
“Pharmacies are facing enormous downward pressure on their business model due to consumer shifts toward e-commerce, mail-in-options for prescription medication, and also unionization efforts that have squeezed staffing and quality service for patients when they visit brick and mortar locations.”
READ MORE from Dr. Josephson on pharmacies’ struggle for survival in RealClearPennsylvania | The Hidden Costs of Unionizing PA Pharmacists
The coming loss of over 1,000 Walgreens stores is very damaging to the health and well-being of millions of Americans who live in “pharmacy deserts”, most of all in Midwestern states. The most elderly and low-income individuals often struggle with online shopping, as well as driving 30 minutes or more to the nearest pharmacy. A CNBC report highlighted New Lebanon, Ohio which has a “population of 3,756 – three dollar stores – a Groceryland grocery store – a few fast-food restaurants, a public library branch” and no active pharmacy.
“The U.S. is on track to have 82 million senior citizens by 2050 and every year we have fewer and fewer community pharmacies ready to serve consumers the medications they need. Online shopping is convenient for consumers and will only increase with time. That’s why this sector must resist ongoing efforts nationwide to unionize pharmacists to the detriment of consumers,” concluded Dr. Josephson, “The loss of this many Walgreens locations adds to a mounting crisis for consumers who need reliable, fast, and personalized care in their local pharmacy.“
Read more in the Cincinnati Enquirer
Consumer Choice Center says Walgreens move will ‘worsen pharmacy deserts’
Dr. Kimberlee Josephson, a fellow with the Consumer Choice Center and an associate professor of business administration at Lebanon Valley College, said in an emailed statement that pharmacies are facing pressure due to consumer shifts toward e-commerce and mail-in options for prescription medication.
Most elderly and low-income individuals often struggle with online shopping, according to the center’s statement, as well as driving 30 minutes or more to the nearest pharmacy.
A CNBC report highlighted New Lebanon, Ohio, which has a “population of 3,756, three dollar stores, a Groceryland grocery store, a few fast-food restaurants, a public library branch,” and no active pharmacy.
“The U.S. is on track to have 82 million senior citizens by 2050 and every year we have fewer and fewer community pharmacies ready to serve consumers the medications they need,” Josephson said. “The loss of this many Walgreens locations adds to a mounting crisis for consumers who need reliable, fast, and personalized care in their local pharmacy.”