(CNN) – Walgreens is set to close a substantial number of its roughly 8,600 locations across the U.S.
This comes as the drugstore chain looks to reset its struggling business.
Walgreens didn’t announce a specific number of store closures, but its CEO said Thursday it’s planning ‘significant’ closures of underperforming stores across the U.S.
CEO Tim Wentworth says the closures will focus on locations that aren’t profitable, too close to each other, or stores struggling with shoplifting losses.
Major drugstore chains have lost money in recent years because of declining profits from filling prescriptions.
That’s because of lower reimbursement rates for prescription drugs as well as new competition from mail-order pharmacies.
The front end of drugstores, where they sell snacks and household staples, also face pressure from larger competitors such as target and dollar stores.
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