NEW YORK (PIX11)—A staple pharmacy on the Upper East Side has already posted a sign that it will close in a few weeks.
Residents say The Duane Reade, owned by Walgreens, competes with other retail pharmacies and shoplifters.
Experts say the big conglomerate has overexpanded its network, and there are too many retail pharmacies from competitors within walking distance, making its business model unsustainable.
“Truly very sad,” said Mojgan. She can’t help but feel nostalgic after walking down on Second Avenue and East 79 Street and noticing a sign notifying customers the store will close on Nov. 12. “I’ve been shopping here for at least 25-26 years, and my daughter growing up getting all of her stuff here.”
Walgreens announced earlier this week that it will close 1,200 stores nationwide, with 500 of them expected to close by next year. The big conglomerate stated the decision was based on low drug reimbursement rates and slower consumer spending.
“The major economic forces driving this industry of retail and pharmaceutical distribution are questioning what do we do in terms of Amazon and internet competition in the future and how to go forward when there are new regulatory changes coming from Medicare and insurance carriers,” stated Mark Weinstock—a clinical associate professor of economics at Pace University.
“Where there is less traffic. Stores that have higher shoplifting rates and rates of shirking in terms of retail theft are going to be more likely the candidates for closures,” said Weinstock.
Customers at different locations tell PIX11 News retail theft has become very regular.
“They just come in, they shoplift, and employees cannot do anything to stop them,” said Tom.
Locked-up shelves don’t help with the customer experience, employees say.
“Most cabinets are closed, and you have to ring a bell, which is really sad,” said Mojgan.
So, what does the future look like for Walgreens and the Retail pharmaceutical industry to survive?
“I see more consolidation in the industry, that there will be fewer locations,” concluded Weinstock.
English (US) ·