The landscape of retail pharmacy is undergoing a significant transformation as Walgreens, the nation’s second-largest pharmacy chain, is poised to close a "significant portion" of its 8,600 U.S. locations in the face of an unsustainable business model and a challenging retail environment, as announced by CEO Timothy Wentworth. This move is part of a broader trend that has seen other major chains like Rite Aid and CVS also reduce their number of stores, signaling a shift in the pharmacy market.
Michigan, with its 127 Walgreens stores, is directly impacted by the company's decision, and as CBS News Detroit reports, customers like Kristin Ketzler are expressing worry over potentially having to travel further or move pharmacies altogether, Ketzler has relied on Walgreens for decades to fill her prescriptions. Meanwhile, Walgreens has stated that stores marked for closure are those that are underperforming, too close to each other, or struggling due to shoplifting losses.
Dr. Mohammad Sohobah, CEO of PharMor Pharmacy and owner of over 20 pharmacies in Michigan, communicated his concerns to CBS News Detroit stating, "Smaller towns and villages all over us. I know in Michigan there's at least 10 villages in Michigan that only have a Rite Aid; that's their only pharmacy provider," emphasizing the challenge for rural communities that may face a lack of access to essential medications.
The ripple effects of these closures also extend to the pharmacy workforce, with many pharmacists finding themselves out of work in the wake of the consolidation, "That effect is there 100%. There are at least 200-300 pharmacists in Michigan who would love to get a full-time today," Sohobah highlighted in his statement obtained by CBS News Detroit.
Similar worries have been echoed by residents like Regina Allen, who told WILX, "It’s not like I take one pill a day; I’m up to 10 pills a day, twice a day on some of them. These are critical medicines, so I am getting very nervous and upset about what’s next," after having her prescriptions recently moved to Walgreens from the closing Rite Aid stores.
The struggle for large drugstore chains is compounded by the growth of Telehealth and online pharmacies such as Amazon and GoodRx, these new players in the market are among the reasons traditional chains are reviewing their strategies, including focusing on stores' profitability and dealing with the effects of retail crime and competition. Walgreens's forthcoming strategy includes targeted promotions, price cuts, and an expansion of their private label to replace some national brands - all in an attempt to remain competitive in a market that is increasingly dominated by different purchasing habits and the rise of alternative pharmaceutical services, as noted by The Detroit News.
