In an effort to cut costs, Walgreens Boots Alliance announced the closure of 1,200 Walgreens stores in the next three years. The chain plans to close 500 stores in 2025 and another 700 by the end of 2027. To better understand sentiment around the closures and likely consumer impacts, Numerator surveyed 500 shoppers with verified Walgreens purchases in the past six months.
An Inconvenient Closure
How do shoppers feel about Walgreens closing stores?
While the closures will not go into effect for several more months, Walgreens shoppers are worried about the possible inconvenience. Nearly three in five consumers say they would be moderately or significantly impacted by a closure of their local Walgreens, and 53% say they will be upset if their local store shuts its doors.
Convenience is the main decision maker for Walgreens shoppers, as 53% say they visit the retailer due to its convenient location. Over a third of shoppers visit for the sales / deals, and a quarter shop there for its good everyday prices and the fact that it’s their preferred pharmacy.
As a drug store stocked with all the supplies that consumers need heading into cold and flu season, it isn’t surprising that most Walgreens consumers rely on the retailer for over-the-counter medications, personal care items, and prescription meds.
Backfilling the Walgreens Gap
Where will Walgreens shoppers go if their local store closes?
Many different retailers stand to benefit as consumers look to fill in the gap left by Walgreens, including other drug stores like CVS or Rite Aid and mass retailers like Walmart and Target. But where consumers plan to shop often depends on what they’re buying.
For OTC and prescription medications, consumers view drug stores, mass retailers, and grocery stores as direct substitutes to Walgreens, in that order. Buyers said they were most likely to get their prescriptions filled at CVS or Walmart if Walgreens stores are no longer an option. But for vaccinations, consumers would visit other drug stores, followed by medical facilities and then mass retailers.
Walgreens Shopper Snapshot
Who typically shops at Walgreens stores?
Nearly seven in ten U.S. households shopped at Walgreens in the 12 months ending June 30, 2024. These shoppers skewed older and higher income and were more likely to be Black or Hispanic than the average U.S. household. The typical Walgreens shopper visits the retailer roughly monthly—averaging 13 trips in a year—and spends just over $300 at the store annually.
Closing Time
The closure of 1,200 Walgreens locations stands to have an impact on a massive number of consumers who rely on the retailer for more than just medication. However, other drug stores that have also faced financial woes in the recent past stand to gain the most from the Walgreens closures as the majority of buyers would move their purchases to other drug stores before opting for a mass retailer or grocery store. For more information on how these changes may impact your business, get in touch with our team today.
