Walgreens is in the midst of a major restructuring in 2025 as it continues to streamline operations and adapt to changing retail healthcare dynamics. The company plans to close approximately 1,200 stores over the next three years, including 500 expected to shutter during fiscal 2025. This initiative is part of its broader Footprint Optimization Program aimed at reducing costs, improving efficiency, and repositioning underperforming assets. At the same time, Walgreens is investing in automation, expanding the use of prescription-filling robots across 11 micro-fulfillment centers, which are now serving over 5,000 locations.
For net lease investors, Walgreens remains a widely held but increasingly nuanced tenant. While it continues to offer long-term leases and corporate credit backing, the ongoing closures highlight the need for location-level due diligence. Investors should prioritize well-located stores with strong surrounding demographics, high prescription volume, and proximity to healthcare hubs. Properties near hospitals, urgent care centers, or within established suburban communities are most likely to be retained in the long term. As the company shifts toward a leaner and more technology-driven model, Walgreens will continue to be a viable NNN tenant—but only in the right markets with sustainable demand.