Walgreens is closing a Chicago South Side store due to theft and declining sales
The ‘Big Money Show’ panel reacts to Chicago Mayor Brandon Johnson forming a coalition of liberal mayors as he faces rising debt costs and criticism of crime and demands for federal funding.
Walgreens announced plans to close a location on Chicago’s South Side next month as the store’s profitability is threatened by high theft rates and declining prescription sales.
The pharmacy chain revealed the reasons for its decision to close the Walgreens at the 86th location of Cottage Grove in the Chatham area. Chicago at the town hall in the community on Saturday.
“I’m here today because we’re closing at 86th and Cottage Grove. But I want to make sure everyone understands that we’re closing. [is] not our goal. This is the last step,” said Regional Vice President of Walgreens Reginald Johnson, according to Fox 32 Chicago.
Walgreens executives revealed at a town hall that the location lost more than $1 million in revenue last year amid declining prescription drug sales and significant crime rates, leading to the decision to close the store June 4.
CHICAGO OFFICE MARKET IN FREEFALL AMID NATIONAL DOWNFALL
Walgreens is closing a location on Chicago’s South Side next month. (Jeffrey Greenberg/Universal Images Group via Getty Images)
Johnson said “theft at this store is 16%,” “four times the company average,” which contributed to the store’s loss.
The company said that it has taken steps for this to fight crime in the store, but could not eliminate the problems in the area.
“The lock boxes help us protect the merchandise in the store. Most of the time, those lock boxes were vandalized. And that’s a huge cost to the company,” said Walgreens regional manager Jason Vasquez, according to a Fox 32 report.
WALGREENS TO CLOSE 1,200 STORES AS PART OF TRANSFORMATION EFFORTS
Walgreens executives said the security boxes and locks are enough to stop shoplifting. (Al Drago/Bloomberg via Getty Images)
It also said Walgreens was spending $400,000 a year security guards at the store, but employees still face attacks and threats amid thefts in the area.
“We’ve had people jump over the counters, because we sell alcohol behind the counter, we drink alcohol, and cigarettes,” said Lonnie Fuqua, the manager of the store. “That ends. It’s not just the financial part but the endurance of that day in and day out.”
Residents and customers of the area voiced concerns at city hall about getting directions and frustrations with going to a location so far from the neighborhood, Fox 32 reported.
CHICAGO COMMUNITY LEADER PLEADS BILLIONS BACK TO WINDY CITY
Walgreens is in the process of closing about 1,200 stores nationwide. (Lindsey Nicholson/UCG/Universal Images Group via Getty Images)
The company encourages customers to use another Walgreens location within 1 mile and is reaching out by mail and email to let customers know how to get their services. instructions delivered by post.
“For seniors, there are solutions in place where you will get free delivery. That has already started with those medications that you may have, under the law, can be delivered,” said Fuqua.
GET FOX BUSINESS ON THE GO BY CLICKING HERE
FOX Business has reached out to Walgreens for comment.
