Walgreens Closes Hundreds of Stores as CVS Expands in Suburban Markets
CVS is quietly gaining market share by absorbing customers from shuttered Walgreens locations across American suburbs. As part of a broader strategy, Walgreens plans to close approximately 1,200 stores—nearly one-quarter of its U.S. footprint—by 2027 due to declining pharmacy reimbursements and retail traffic. In contrast, CVS is expanding by opening new stores and benefiting from mandatory prescription transfers when pharmacies shut down. In August 2025, Walgreens was taken private in a $10 billion deal with Sycamore Partners, allowing it more flexibility without public market pressure. Meanwhile, CVS reported strong second-quarter results for 2026, including over $106 billion in revenue and an operating income of about $5.2 billion—up by more than 35% year-over-year. Its ownership of Caremark gives it a vertically integrated advantage that helps buffer against reimbursement pressures. The shift is reshaping the retail pharmacy landscape without overt competition, with both chains collectively handling nearly 40% of U.S. prescription sales. The closures are also affecting consumer behavior and convenience spending in local communities.
Tickers: $CVS
Topics: acquisition strategy pharmaceuticals retail store closures