East Oakland residents are preparing for a change in their local pharmacy landscape, as Walgreens has confirmed the upcoming closure of two additional stores in the area. The stores at 3434 High Street and 5809 Foothill Boulevard will shutter their doors by January 22 and January 30, respectively, in 2025. In transferring prescriptions, customers of the closing stores will be directed to Walgreens at 3232 Foothill Boulevard, as reported by The Oaklandside.
These closures add to a trend seen nationally over the past decade, where many drugstores have ceased operation. According to a study published in Health Affairs, around 30% of drugstores open between 2010 and 2020 were closed by 2021. This accounts for more than 26,000 of approximately 89,000 businesses. Further compounding the pharmacies' challenges, the study indicated a higher likelihood of closures for those serving larger numbers of Medicare and Medicaid recipients. Meanwhile, drugstores continuously face rising drug costs and stagnant or reduced reimbursements, KTVU reports.
Walgreens spokeswoman Samantha Stansberry cited "increased regulatory and reimbursement pressures" as central factors impacting the company's ability to meet financial obligations for rent, staffing, and supply needs. Similarly, the broader pharmacy sector has been increasingly challenged by online competitors such as Amazon and sundry retailers, including Dollar General and Target. Walgreens has suffered setbacks from legal penalties, including a substantial $106.8 million settlement earlier this year for improperly billing government health programs. These factors and Walgreens' strategic maneuvers paint a picture of an industry under significant transformation, according to The Oaklandside.
For the community, the closures are more than statistics; they disrupt routine and access to essential services. Leonard Mercer, a loyal patron of the High Street Walgreens since 1974, expressed his dismay to KTVU, saying, "I'm very, very sad." He remarked on the necessity of relocating to acquire his medications, highlighting a personal impact that many may feel in the wake of these closures. Reflecting on the potential job displacement, Stansberry noted the company's efforts to find other positions for affected employees, acknowledging the closures not only as a business decision but also as a personal challenge for the staff.
