Walgreens To Close Thousands of Stores Amid Rampant Inflation

Scott Giebel | July 2, 2024

It is no secret that inflation has been a significant issue since Joe Biden became President, affecting not just the American people but also leading many retail chains to close thousands of stores.

Inflation is causing customers to become more selective about where they shop and what they buy, which is having a major impact on stores. According to an article by Yahoo Finance, well over 3,400 retail stores are set to close this year alone, marking a 22% increase in store closures compared to this time last year.

Now, CBS News reports Walgreens is the latest victim of inflation, with the chain announcing they’re shutting down 25 percent of their roughly 8,600 U.S. locations, which amounts to about 2,150 store closures.

Walgreens CEO Tim Wentworth reportedly told investors that "[t]he current pharmacy model is not sustainable,” alluding not only to the retailer’s current troubles, but suggesting a lack of confidence that things will improve in the future.

About a month ago, Walgreens reduced prices on 1,300 products to stay competitive as the economy showed signs of slowing down, similar to other retailers.  

Related: Nearly 10,000 California Fast-Food Jobs Lost Since Newsom Signed $20/Hour Minimum Wage Law

Inflation is also having a big impact on fast-food chains. According to Fox 5, inflation, coupled with California's $20 minimum wage law, led the iconic Hollywood Arby’s location to close its doors after 55 years. Other retailers have hiked their prices to keep up with government mandates and the rise in the cost of supplies.

And while major retailers closing thousands of stores might make the biggest headlines, small businesses are also feeling the crunch of higher prices and government regulations. According to a poll conducted earlier this year, nearly half of the nation’s small business owners say their businesses won’t survive, if they are subjected to another four years of Joe Biden in the White House.

The impact of inflation on major retail chains is undeniable as stores begin to close. Despite this, the Biden administration continues to assert that inflation is not a pressing issue.

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