The Decline of Walgreens

Walgreens has been a staple of American retail since its inception in 1901, but its value has dramatically plummeted from over $100 billion to around $10 billion in recent years. The chain’s struggles are highlighted by its inability to adapt to evolving market conditions and consumer preferences, particularly as competition intensified from both traditional pharmacies and online services. Walgreens' controversial decision to negotiate aggressively with Pharmacy Benefit Managers (PBMs) backfired, resulting in the company being excluded from key networks and losing access to millions of customers. This marked a significant turning point, illustrating that despite its vast store presence, Walgreens lacked the leverage it once held in negotiations.