Walgreens is closing approximately 1,200 locations as the drug store chain struggles to contend with online competitors and declining prescription drug payments.

The closures will occur within the next three years, starting with 500 stores being shuttered in fiscal year 2025, Walgreens announced Tuesday.

After sharing that a quarter of its locations are unprofitable, the retail chain said it's aiming to cut a substantial number by 2027.

Walgreens said the 1,200 closures of the 8,500 stores in the U.S. over the next three years include 300 stores “previously approved” under a company “transformational cost management program.” Walgreens said about 500 stores will close in its fiscal 2025, which began Sept. 1 of this year.

The closures will occur within the next three years, starting with 500 stores being shuttered in fiscal year 2025, Walgreens announced Tuesday.

"I had previously been informed that this location was to be closed in mid-November, but that after several thefts in recent weeks the decision was made to close early," she said. The Walgreens website and voicemail messaging system says the store is "temporarily" closed but the pharmacy drive-thru is still open.

Illinois-based Walgreens announced during an earnings call Tuesday morning that the company will close 1,200 stores across the country.

Despite surpassing fourth-quarter sales and profit expectations, about 14% of its 8,600 U.S. stores are closing, starting in 2025 with 500 locations. Walgreens is attempting to cut costs, but intends to reassign impacted employees to nearby stores,