Walgreens closing 1,200 stores after $3 billion loss. Here's what to know

Walgreens plans to close 1,200 stores after posting a $3 billion loss, the company announced Tuesday .

Here's the latest and how it might affect Ohio.

Walgreens posts $3 billion loss

In its earnings report for Fiscal Year 2024, which ended Aug. 31, Walgreens reported a $3 billion loss in the fourth quarter.

Tim Wentworth, CEO of Walgreens' parent company, Walgreens Boots Alliance, described the company as battling a "difficult operating environment," The Columbus Dispatch reported in June.

Walgreens to close 1,200 stores, including 500 in the next year

As a result, the company plans to close about 1,200 stores over the next three years. About 500 stores will close in Fiscal Year 2025, Walgreens stated in its release.

Walgreens had confirmed to USA TODAY in June its plans to close unprofitable stores but had not disclosed how many locations would be affected, USA TODAY reports in a separate story. The company did not specify which stores would be closing.

The move is part of a multi-year cost-cutting program under Wentworth, who took on the CEO job last year, USA TODAY writes. In a statement, Wentworth reiterated the company's commitment to focusing on improving its core business—retail pharmacy.

How many Walgreens does Ohio have?

Of the roughly 8,600 locations in the United States, the pharmaceutical chain manages about 140 Walgreens stores in Ohio.

Walgreens has closed several stores in Ohio

Walgreens has been on shaky ground for a while.

A downtown Cincinnati Walgreens closed in October 2023. A Columbus Walgreens permanently shut down in April, according to Yahoo , on the heels of a store closure in West Dayton back in March, per the Dayton Daily News .

Walgreens joins Rite Aid, CVS in closing stores

The dwindling drugstore chain joins stores like Rite-Aid, which filed for bankruptcy last year and closed stores across Ohio .

Other competitors, like CVS Pharmacy, have also felt the pinch of declining profits, and even with nearly 400 CVS locations across Ohio , the retailer has closed at least 900 stores over the past few years, according to CNN .

Consumer Choice Center says Walgreens move will 'worsen pharmacy deserts'

Dr. Kimberlee Josephson, a fellow with the Consumer Choice Center and an associate professor of business administration at Lebanon Valley College, said in an emailed statement that pharmacies are facing pressure due to consumer shifts toward e-commerce and mail-in options for prescription medication.

Most elderly and low-income individuals often struggle with online shopping, according to the center's statement, as well as driving 30 minutes or more to the nearest pharmacy.

A CNBC report highlighted New Lebanon, Ohio, which has a "population of 3,756, three dollar stores, a Groceryland grocery store, a few fast-food restaurants, a public library branch," and no active pharmacy.

"The U.S. is on track to have 82 million senior citizens by 2050 and every year we have fewer and fewer community pharmacies ready to serve consumers the medications they need," Josephson said. "The loss of this many Walgreens locations adds to a mounting crisis for consumers who need reliable, fast, and personalized care in their local pharmacy."

This story was updated to correct a typo.

This article originally appeared on Cincinnati Enquirer: Walgreens closing 1,200 stores after $3 billion loss. Here's what to know