Walgreens plans to close 1,200 more stores. How many Arizona stores are at risk?

Walgreens is closing about 1,200 U.S. stores as consumer spending continues to decline for the pharmacy chain.

The closures, which will happen within the next three years, will start with 500 stores being shuttered in fiscal year 2025, Walgreens announced Tuesday in an earnings report . The news comes after the company had previously confirmed plans to close unprofitable stores.

The decision to close stores is part of a multi-year cost-cutting program under Walgreen's new CEO Tim Wentworth.

"This turnaround will take time, but we are confident it will yield significant financial and consumer benefits over the long term," Wentworth said in the statement .

Here's what to know about the closures and how Arizona shoppers could be affected.

How many Walgreens stores will close?

In an earning report Tuesday, Walgreens announced 1,200 stores will close due to a slump in consumer spending, according to USA TODAY .

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Why are Walgreens closing?

In the statement to USA TODAY , a Walgreens spokesperson said the company is repositioning its store footprint, noting that about 25% of its stores are not contributing to the chain's long-term strategy.

While Walgreens exceeded its target of slashing $1 billion in costs in the last fiscal year, the chain reported a $3 billion loss last quarter. Still the chain's revenue in the last fiscal year rose more than 6% from the a year ago, according to the company's earnings report.

Fourth-quarter sales in the retail pharmacy sector reached $29.5 billion, an increase of 6.5% from the same quarter a year ago.

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Will any Walgreens close in Arizona?

Which Walgreens store locations will close has yet to be determined. The store did confirm that closures will happen over the next three years. In 2025, 500 stores are expected to close.

Walgreens operates roughly 8,700 stores in 50 states, the District of Columbia, Puerto Rico and the U.S. Virgin Islands, according to its website. There are Walgreens locations in more than 40 Arizona cities .

These chains announced store closures this year

News of the impending closures come as Walgreens and other drugstore chains struggle to keep up with competition from Amazon, as well as declining drug reimbursement rates from middlemen for filling prescriptions.

CVS has laid off thousands of corporate and other employees since 2023 while dealing with "continued disruption, regulatory pressures, and evolving customer needs," a spokesman previously told USA TODAY. Since declaring bankruptcy about a year ago , Rite Aid has closed hundreds of stores across the U.S. after struggling for years to keep up with its larger competitors.

But drug stores aren't the only businesses facing declining sales amid rising prices and a downturn in consumer spending.

Just this week, hardware wholesaler True Value became the latest chain to file for bankruptcy since the COVID-19 pandemic, joining LL Flooring , Red Lobster , Bed Bath & Beyond and Big Lots, which has since shuttered hundreds of stores since it announced its bankruptcy proceedings in July .

A host of others, including Hooters , Walgreens , Sears, Kmart , J.C. Penney , and even Disney Stores , are among those that have shuttered stores across the nation since 2020.

This article originally appeared on Arizona Republic: Walgreens plans to close 1,200 more stores. How many Arizona stores are at risk?