Walgreens (NASDAQ:WBA) is diving headfirst into one of the biggest retail overhauls in recent memoryshuttering 500 stores in 2025 as part of a sweeping plan to close 1,200 locations in total. Despite beating Wall Street expectations last quarter, the company is pulling the plug on underperforming sites as it wrestles with shrinking drug margins, rising theft, and a consumer shift toward cheaper, digital-first alternatives. It's not alone. CVS just wrapped up a three-year plan to close 900 stores, and Rite Aid is scaling back post-bankruptcy. Walgreens' closures could hit 33 states and mark a turning point for the traditional pharmacy model that boomed during the COVID era but is now losing ground fast.

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CEO Tim Wentworth isn't sugarcoating it. He called this a turnaroundone that's going to take time, but one the company believes will unlock serious financial and customer value. About one in four of Walgreens' 8,700 U.S. stores aren't profitable, but the other 6,000? Those are stayingand will see fresh investments over the coming years. Wentworth is betting on a smaller, stronger footprint to support a retail pharmacy-led model that still makes sense to today's consumer. But make no mistake, this is a high-stakes bet in a brutally competitive space.

Adding another twist: Walgreens is heading off Wall Street. The company struck a nearly $10 billion deal with private equity firm Sycamore Partners to go private. Shareholders will get $11.45 per share in cash, with a potential $3 per share kicker if certain milestones are hit. Between a leaner store count, a complete corporate reset, and now a private market pivot, Walgreens is ripping up the playbookand investors should keep watching to see if the gamble pays off.