In the most recent round of retail shop closures in San Francisco, Walgreens identified “increased regulatory and reimbursement pressures” as the reason for closing a dozen of its locations.
“Our retail pharmacy business is central to our go-forward business strategy,” Walgreens said in a statement to CBS News Bay Area. However, our ability to pay for rent, staffing, and supply demands is being hampered by growing regulatory and reimbursement pressures. Closing a store is never a simple decision. We make every effort to enhance store performance because we recognize the significance of our stores to the communities we serve. We will collaborate with community stakeholders to minimize customer interruptions when closures are required, such as those in San Francisco.”
Twelve establishments throughout the city would close between February 24 and February 27, the statement further said. The places are:
A number of the shops had experienced several retail robberies, and in April 2023, an armed security guard shot Banko Brown, an alleged shoplifter, at the Market Street location. The supermarket that started padlocking its freezer section to deter shoplifters is located in the city’s Richmond District on Geary Boulevard.
Walgreens attributed a string of store closures in 2021 on persistent retail theft. City officials, however, drew attention to Walgreens’ 2019 announcement that it would eliminate 200 locations nationwide, including San Francisco.
Since 2019, Walgreens has shut down at least 17 of its locations in San Francisco. Since the beginning of the pandemic, other major retailers have also declared plans to close their locations in the city. The city’s Financial District saw its last closure in February 2024. A substantial drop in foot traffic in the Financial District since the start of the epidemic, according to Walgreens, was the reason for the shutdown.
Amid poor drug reimbursement rates and decreasing consumer spending, Walgreens’ parent company, Walgreens Boots Alliance, stated in October that it would eliminate 1,200 stores over the next three years, with 500 closures scheduled for 2025. Approximately 14% of its U.S. outlets have been closed.
Some Americans are rushing to fill prescriptions as a result of the closure of hundreds of pharmacy sites nationwide by other large drugstore chains, such as Rite Aid and CVS.
The majority of closures, according to public health experts, are occurring in low-income neighborhoods, aggravating pre-existing health disparities in those areas.
Eliot Pierce is a dedicated writer for ChiefsFocus.com, covering local crime and finance news. With a keen eye for detail and a passion for storytelling, Eliot aims to provide his readers with clear and insightful analysis, helping them navigate the complexities of their financial lives while staying informed about important local events. His commitment to delivering accurate and engaging content makes him a valuable resource for the community.