Big Changes Are Coming for Walgreens — What to Expect

Many have speculated that Walgreens is going out of business. Is that true or just a rumor? The pharmacy chain does have big changes coming.


Mar. 7 2023, Published 11:33 a.m. ET

Walgreens Pharmacy
Source: Wikimedia Commons

Walgreens and other stores are limiting purchases of children's medicines.

Corner drug stores have been a staple in American cities and towns nationwide for decades. Over the years, pharmacies like Walgreens have transformed into one-stop shops for those on the go. How has Walgreens shifted over time and what can customers expect in the future?

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Is Walgreens going out of business? Many rumors have been circulating, but are they true? Walgreens does have some big changes coming. Keep reading for all the details.

Did Walgreens get bought out?

A brand going out of business can sometimes be caused by an existing company being bought out or acquired by a greater brand, thus pulling it into its network or causing a rebrand of a pre-existing brand identity. There have been rumors that Walgreens is going out of business. Others suspect that there could be some internal overhaul at Walgreens. Did Walgreens get bought out? Actually, it's quite the opposite. Some people thought that Walgreens was outbid into another brand, but that isn't the case.

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Walgreens has been buying out other brands and becoming a pharmaceutical giant among its competitors while being acquired itself. In October 2022, Walgreens Boots Alliance announced that it would fully acquire CareCentrix in an effort to boost its presence in the in-home care space. Overseas, AmerisourceBergen shared that they bought out Walgreen's Alliance Healthcare, which is one of the leading brands in European drug wholesale, for $6.27 billion.

In November 2022, Walgreens Boots Alliance purchased Summit Health-CityMD in another step forward for their healthcare solutions branch. Walgreens has a long history of making successful business moves that benefit the company financially. Currently, the company hasn't been bought out. Also, there aren't any signs that Walgreens will get bought out in the near future. In fact, the company's buying power should be a threat to other brands or companies below them.

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Walgreens could be eyeing potential mergers.

Outdated Walgreens storefront
Source: Walgreens FB

Walgreens is one of many retailers limiting customer purchases of formula.

Walgreens' buying power has allowed the company to make even greater advances in the pharmaceutical industry. While nothing has been completely finalized yet, Walgreens might be eyeing a merger with Summit Health, with potential financial investments from insurance company Cigna, in the future. VillageMD, whose parent company is Summit Health, is already owned by Walgreens Boots Alliance. This merger wouldn't be a surprising move for either brand.

Bloomberg reports that if Summit Health and Walgreens Boots Alliance merge, the total cost of acquisition could lie between $5 billion and $10 billion. In early 2023, there has been no further development on the status of the merger, which means it could still be an ongoing process. It's also a possibility that Summit Health and Walgreens might postpone the merger or forgo it altogether.

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Is Walgreens going out of business?

Walgreens marquee
Source: Getty Images

Walgreens going out of business has been an ongoing conversation amid the rise of telehealth, delivery prescription services, and other external threats. While there haven't been any reports of Walgreens closing its doors for good and going out of business, physical storefronts have been declining. Currently, Walgreens going out of business appears to be just a rumor, considering possible mergers with Summit Health However, the financial support for physical stores has declined since the COVID-19 pandemic started.

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According to reports, Walgreens and CVS will be closing some stores across the nation in 2023. The closures started in 2015 when 200 Walgreens stores closed to cut costs. In recent years, fewer patrons went into Walgreens to shop, although they did go to Walgreens for their COVID-19 vaccinations, boosters, and testing kits. If anything, the storefronts are facing their greatest loss right now.

Walgreens itself shows no signs of going out of business despite closing some stores across the U.S. As a company, Walgreens is making changes as needed to current stores and considering key financial moves as it looks to the future.

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