In recent months, the retail pharmacy chain Walgreens has been the subject of growing speculation, with one question repeatedly surfacing: Is Walgreens going out of business?
While the company is not shutting down entirely, it is undergoing a major transformation, marked by store closures, strategic shifts, and a pending $10 billion acquisition by a private equity firm.
From a public relations and marketing perspective, the current state of Walgreens presents both challenges and opportunities in shaping its future narrative.
Understanding the Store Closures
In 2024, Walgreens announced plans to close approximately 1,200 stores—roughly 13% of its U.S. retail footprint—over the next few years.
This move was not positioned as a sign of collapse, but rather as part of a broader “optimization strategy.” The closures are being concentrated in underperforming markets, where foot traffic has declined due to changing consumer behavior, digital competition, and neighborhood economic shifts.
Although many consumers interpret store closures as a sign that a brand is failing, Walgreens insists this is a proactive measure designed to streamline operations and improve profitability.
Still, the optics of closing hundreds of stores presents a public relations challenge. The brand must carefully manage communications to reassure customers, investors, and communities that it is repositioning—not retreating.
Financial Struggles and Write-Downs
Walgreens has faced a difficult financial landscape. The company’s earnings reports have shown increased revenue but also mounting losses. In fiscal 2024, Walgreens brought in $147.7 billion in revenue—up over 6% year-over-year—but also wrote down $6 billion related to its underperforming VillageMD primary care investment.
These write-downs and the rising costs of operations have raised eyebrows among investors and analysts. However, they also reflect Walgreens’ willingness to pivot away from costly strategies that haven’t paid off—something that could be positioned as a strength in its PR messaging.
Instead of allowing the narrative to focus on failures, the company’s communications team can redirect attention toward decisive leadership and a willingness to evolve.
The Private Equity Acquisition
In March 2025, Walgreens agreed to a $10 billion buyout deal with Sycamore Partners, a private equity firm known for its investments in retail turnarounds.
The deal will take Walgreens private, allowing the company to restructure and implement changes away from the public market’s quarterly scrutiny.
This acquisition raises questions about the future of Walgreens, but it also opens the door for rebranding and reinvention.
From a marketing standpoint, the transition could allow for a repositioning of the Walgreens brand—modernizing its image, refining its value proposition, and appealing to a broader demographic.
However, being owned by a private equity firm can also invite skepticism. Customers may fear cost-cutting, layoffs, or a reduced commitment to healthcare access. These perceptions must be addressed with careful and transparent communication.
Customer Experience and Brand Loyalty
One of the biggest hurdles Walgreens faces is declining customer satisfaction. In the wake of the announced closures, many shoppers have complained about longer lines, empty shelves, and understaffed pharmacies.
These operational issues, while perhaps temporary, contribute to a larger perception problem. In the minds of consumers, inconvenience can easily be equated with instability.
The company must therefore double down on its customer engagement efforts. Strong messaging that explains store closures as strategic—not desperate—can help maintain loyalty.
Additionally, marketing campaigns focused on reliability, access to care, and digital convenience can reassure customers that Walgreens is evolving to serve them better, not abandoning them.
A Digital-First Marketing Pivot
To compete in an increasingly online marketplace, Walgreens is investing heavily in its digital platforms. The company has expanded its telehealth offerings, enhanced its mobile app, and promoted same-day prescription delivery.
These moves are key to countering the belief that Walgreens is falling behind. A robust digital marketing strategy—backed by personalization, convenience, and accessible healthcare—can reposition the brand as forward-thinking and responsive to modern consumers.
While brick-and-mortar stores may be shrinking, the digital Walgreens presence is growing. Messaging that highlights this shift will be vital in shaping consumer perception.
The PR Imperative: Transparency and Reassurance
If Walgreens wants to silence the persistent question—is Walgreens going out of business—it must lead with transparency. The company should openly acknowledge the challenges it faces while focusing its messaging on what it’s doing to adapt and grow.
This means proactive media engagement, consistent updates across social platforms, and meaningful customer outreach. By owning the narrative, Walgreens can frame itself as a resilient, responsive brand—rather than one in retreat.
At the same time, it should amplify its success stories: digital innovations, community health initiatives, and customer satisfaction improvements. These wins can reinforce trust and reset public perception.
Conclusion
So, is Walgreens going out of business? No—but it is in the middle of a critical restructuring phase. Store closures, financial adjustments, and ownership changes are reshaping the brand.
For Walgreens to succeed in this transformation, effective PR and marketing will be just as important as operational efficiency. The battle for public trust, customer loyalty, and brand relevance must be fought—and won—through clear, strategic, and empathetic communication.