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The basics:

• Walgreens to close NJ stores in Cherry Hill, Pleasantville
• Closures part of plan to cut 25% of US stores by 2027
• Retailer lost $2.9B in Q2 as turnaround efforts continue
• Walgreens set to go private in $10B Sycamore acquisition

At least two Walgreens stores in New Jersey will be among the latest wave of closures connected to the retail pharmacy chain’s ongoing efforts to reset its struggling business.

According to the Illinois-based company’s website, more than four dozen outposts across 17 states will go dark by the end of June.

Within New Jersey, Walgreens plans to close locations in:

• Cherry Hill, 504 Kings Highway N., by May 19
• Pleasantville, 855 N. Main St., by June 23

The company announced a turnaround strategy in June 2024. Under the plan, Walgreens said it expects to shutter up to 25% of its 8,600 stores in the U.S. by 2027. In New Jersey, the 124-year-old company has over 190 locations.

At the time, executives did not specify which locations will be impacted. However, they said they’re focusing on stores that aren’t profitable, are too close to each other or struggling with theft. Walgreens has also said it aims to invest in and deliver an improved customer and patient experience across channels.

During the company’s most recent earnings call in April, CEO Tim Wentworth said 70 stores closed during its fiscal 2025 first quarter, which ended Nov. 30, 2024.

This year, Walgreens plans to wind down about 450 stores as it works to improve cash flow, he said. For its 2025 Q2,the retailer reported a loss of $2.9 billion.

Changing landscape

Two months ago, Walgreens announced a definitive agreement for private equity firm Sycamore Partners to acquire the company in a deal valued at $10 billion. After the transaction’s expected closing in the fourth quarter of this year, Walgreens will become a private company. It will maintain its headquarters in the Chicago area.

Based in New York City, Sycamore’s portfolio includes consumer, distribution and retail-related investments. It features brands such as The Goddard School, Ann Taylor, Lane Bryant, Staples, The Limited, Hot Topic and Talbots. Last fall, it purchased superfruit bowl chain Playa Bowls from Tamarix Equity Partners for an undisclosed sum. After the acquisition, the new owners said they plan to speed up growth of the Jersey Shore-born concept.

Commenting on the proposed takeover, Wentworth said, “We are focused on making health care delivery more effective, convenient and affordable as we navigate the challenges of a rapidly evolving pharmacy industry and an increasingly complex and competitive retail landscape. While we are making progress against our ambitious turnaround strategy, meaningful value creation will take time, focus and change that is better managed as a private company. Sycamore will provide us with the expertise and experience of a partner with a strong track record of successful retail turnarounds.”

The proposed acquisition comes as rival Rite Aid plans to close all of its 1,200-plus stores nationwide after filing for Chapter 11 bankruptcy protection. Walgreens, CVS Pharmacy, Kroger, Albertsons and Giant Eagle are among the chains that plan to acquire the pharmacy assets. Nationwide Rite Aid has 1,000-plus locations.