Walgreens plans to close 1,200 stores by 2027 due to growing competition from online retailers and declining prescription drug payments. This includes 500 closures in the next year alone, an increase from the 300 closures announced in June as part of CEO Tim Wentworth’s optimization strategy.

Despite a 6% revenue increase last quarter, the company reported a $3 billion loss due to writedowns. Walgreens shares rose 4% in premarket trading but are down 70% this year. Drugstores like Walgreens, CVS, and Rite Aid face declining profits from prescriptions and increased competition from Amazon, Target, and Dollar General.