Walgreens announces it will close 12 stores across San Francisco
Walgreens announced it was closing a dozen stores in San Francisco because of what it called "increased regulatory and reimbursement pressures" in the latest round of retail store closures in the city.
In a statement to CBS News Bay Area, Walgreens said, "Our retail pharmacy business is central to our go-forward business strategy. However, increased regulatory and reimbursement pressures are weighing on our ability to cover the costs associated with rent, staffing, and supply needs. It is never an easy decision to close a store. We know that our stores are important to the communities that we serve, and therefore do everything possible to improve the store performance. When closures are necessary, like those here in San Francisco, we will work in partnership with community stakeholders to minimize customer disruptions."
The statement added that 12 stores across the city will close between Feb. 24 and Feb. 27. The locations are:
- 1201 Taraval Street
- 3201 Divisadero Street
- 1363 Divisadero Street
- 825 Market Street
- 1750 Noriega Street
- 5280 Geary Boulevard
- 1524 Polk Street
- 1301 Franklin Street
- 1189 Potrero Avenue
- 135 Powell Street
- 1630 Ocean Avenue
- 5300 3rd Street
Several of the locations were sites that saw multiple retail thefts, while the store on Market Street was the location where an armed security guard shot an alleged shoplifter, Banko Brown, in April 2023. The Geary Boulevard location in the city's Richmond District is the store that began padlocking its freezer section to thwart shoplifters.
In 2021, Walgreens blamed ongoing retail theft for a series of store closures. However, city leaders pointed out that Walgreens had announced in 2019 its plans to close some 200 stores around the country, including in San Francisco.
Walgreens has closed at least 17 stores in San Francisco since 2019 and is among other large retailers to have closed up stores in the city or announced plans to close since the start of the pandemic. The last one to close was in February 2024 in the city's Financial District. Walgreens said the closure was "due to a significant decrease in foot traffic in the Financial District since the onset of the pandemic."
In October, Walgreens' parent company Walgreens Boots Alliance announced it would close 1,200 stores over the next three years, with 500 closures set for 2025 amid low drug reimbursement rates and slower consumer spending. The closures represent about 14% of its U.S. locations.
Other major drugstore chains including Rite Aid and CVS are closing hundreds of pharmacy locations across the U.S., leaving some Americans scrambling to fill prescriptions.
Public health experts warn the bulk of the closures are taking place in low-income neighborhoods, exacerbating health inequities that already exist in those communities. In San Francisco's District 10 which covers the city's Bayview and Hunters Point neighborhoods, its two remaining Walgreens stores are among those slated to close.
"It's a resource here in the community," said resident Cynthia Ruth who comes to the location at 5300 3rd Street frequently to get her medications and some basic groceries.
"I think we need a pharmacy in this particular neighborhood," said Ruth. "We just need it."
Ruth spent time talking with District 10 Supervisor Shamann Walton about the closure and the impacts it will have on the area.
"These two closures are going to be devastating to our community," said Walton, who has spoken with Walgreens representatives in hopes of saving at least one of the stores.
Walton said he has also been in touch with new San Francisco Mayor Daniel Lurie about what can be done to keep retailers in the city and attract new ones. Just a couple of years ago, a Lucky grocery store moved into the building left vacant by another Walgreens closure in 2019.
"Our hope is we can do something similar," Walton said. "Reach out to other folks that provide pharmacy services. That provide food and other services. Hopefully, we can fill the gap that's going to be left by Walgreens."
Andrea Nakano contributed to this article.
