New York (CNN) — Drug stores around the United States are struggling. Especially Walgreens.
Walgreens’ stock has plunged more than 80% over the past five years, ranking the company among the worst-performing stocks during that stretch. It’s closing 1,200 stores, roughly 15% of its locations. And now Walgreens is reportedly looking to escape the public market.
Walgreens and private equity firm Sycamore Partners are discussing a deal to take Walgreens private, the Wall Street Journal reported Tuesday. The companies declined to comment to CNN on a potential deal.
Pharmacies aren’t what they used to be
Walgreens’ problem, first and foremost, is that it’s more of a traditional pharmacy than CVS.
Walgreens has slipped behind CVS because it’s smaller than CVS, giving it less scale to negotiate prices with insurers and other health care entities that pay for most of the prescriptions people pick up. Walgreens is also more reliant on filling prescriptions through its pharmacy business and selling snacks and household essentials than CVS, which …