When their neighborhood store closes this week, Walgreens customers will soon face longer lines and more driving. The store in Tacoma, Washington, is scheduled to shut its doors for the last time on Wednesday.
South End Walgreens Shuts, Customers Disheartened
The Walgreens in the South End neighborhood has hung closure notices on its doors, upsetting many customers. "I've been in this area for a long, long time, and it's just sad to see it go," shopper Isaac Juma told local Fox affiliate KCPQ.
"I hate that it's closing. We've come here for our medication for a while," he added. Juma also predicts longer waits elsewhere: "I can see lines will get bigger because when you have fewer places to go, lines are going to get bigger."
Kurt, a regular customer, noted that with the closure of their local Walgreens, people will now have to travel further-to stores approximately 1.3 and 1.8 miles away. This inconvenience stems from the company's recent decision to shut down the store, as revealed in a recent earnings call.
During the call, Walgreens highlighted "challenging macroeconomic conditions and a slower-than-expected start to the cough, cold, and flu season" as key factors contributing to poor retail performance and the closure decision. The company also noted that reduced consumer discretionary spending has negatively impacted its business.
A store employee confirmed that the earnings issues were a driving factor in the closure. However, locals like Juma believe there are other forces at play. "I'm a believer that crime is a big cause here," Juma stated, suggesting that safety concerns might also influence such decisions.
"I think it's a systemic problem with our whole country right now, like in San Francisco... they are losing stores there," he said, pointing to similar retail struggles elsewhere.
Walgreens operates 132 locations across Washington, with the Tacoma store being the only one in the area slated for closure.
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Walgreens CEO Unveils Strategy Against Amazon
Walgreens CEO Tim Wentworth recently outlined a new strategy to outperform competitors like Amazon, focusing on the company's unique customer service advantage. "We will beat Amazon because of the human interface that we offer in communities and neighborhoods," Wentworth explained during an interview with CNBC.
He highlighted Walgreens' 8,600 locations' accessibility for customers needing to discuss medications or health concerns or purchase over-the-counter products alongside their prescriptions. "Those are the things that I think are going to differentiate us, not just the fact that we can do it in an hour," Wentworth said, referring to Walgreens' same-day delivery service.
Despite this optimistic plan, Wentworth acknowledged that a "challenging retail environment in the US" might complicate efforts to overcome expected slim profit margins in 2024. This statement follows a June 2023 announcement that Walgreens would close 450 locations by August of this year, with 300 closures in the UK and the remainder in the US.
In related news, a popular discount store recently filed for bankruptcy and will close all 371 locations. Additionally, a major grocery chain has announced the closure of eight locations in the next two weeks.
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