For a while it seemed as if drug and convenience stores were opening on the parking lots of other drug and convenience stores as the sector experienced a broad expansion. Now a reckoning appears to be here.

 Walgreens announced that it will close 1,200 stores over the next three years.

 “Walgreens, like its competitors, has struggled for years with tight reimbursement for the prescriptions it sells as well as the rising costs of operating stores.

 Rival CVS Health Corp. is closing 900 stores. Another major chain, Rite Aid Corp., emerged from bankruptcy protection this year after whittling its store count down to about 1,300 locations,” reports the AP.

 Also this week, “the parent company of the 7-Eleven convenience store brand, Tokyo-based Seven & i Holdings Co., is planning to close 444 locations in the U.S. and Canada to cut underperforming assets in the region amid a change in its operational structure. The company did not disclose which stores will close, but the total represents roughly 3% of its North American portfolio,” reported GlobeSt.com

 As retail struggles to reinvent itself following the pandemic, empty stores will of course impact corporate real estate.

 According to CoStar, “ drugstores that were used by national chains are nevertheless relatively easy to sell compared to other retail properties,” said Daniel Taub, national director of the retail and net lease divisions at Marcus & Millichap. They often occupy high-profile sites, increasing their value.

 “One of the good things about Walgreens and CVS is that they usually have good corner locations at traffic signals, with good visibility and good access,” Taub told CoStar News.

 As the landscape of retail continues to shift, these closures signal a reckoning for the sector, and present opportunities for reinvention. High-profile locations, once bustling with activity, may find new life as they transition to different uses or attract new tenants. As we navigate this evolving landscape, the resilience of retail will be tested, but the potential for innovative solutions remains bright, and with strategic foresight, it can also be full of promise.