It was once the "Walgreens of the Future." If you spent any time in downtown Chicago between 2012 and 2022, you know exactly which building I’m talking about. The massive, two-story glass facade at 151 N State Walgreens wasn't just a place to grab a discounted bottle of aspirin or a last-minute birthday card. It was a flagship. A statement.
Honestly, it felt more like a department store than a pharmacy. You had a juice bar, a high-end beauty department with "beauty advisors," and even a professional manicurist on-site. People actually hung out there. But then, the doors locked for good in early 2023, leaving a gaping hole at the corner of State and Randolph. It wasn't just another store closing; it was a signal that the retail math for the Loop had fundamentally broken.
The Rise and Fall of the "High-End" Pharmacy
When Walgreens opened the 27,000-square-foot space at 151 N State, they were trying to out-CVS CVS. They wanted to prove that a drugstore could be a luxury destination. It was part of a broader strategy spearheaded by former executives who envisioned "destination" locations in major hubs like New York’s Empire State Building and Hollywood.
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The 151 N State Walgreens was the crown jewel of this plan.
It worked for a while. The foot traffic from the nearby CTA stations and the theater district was immense. You’d see tourists wandering in for snacks and office workers hitting the pharmacy during their lunch break. But the overhead on a space that large in one of the most expensive real estate corridors in the country is staggering. You have to sell a whole lot of lipstick and Gatorade to cover the rent on a multi-level flagship.
Then the world shifted. We all know the story: the pandemic emptied out the office towers. The "commuter pulse" that fed the Loop stores flattened. Even when people started coming back, they weren't coming back five days a week. By the time Walgreens announced it was shuttering the location, the writing was basically on the wall. The company started a massive cost-cutting initiative, aiming to save billions, and high-rent, high-complexity flagship stores were the first things on the chopping block.
Why 151 N State Walgreens Couldn't Survive the Loop's Evolution
Retailers are looking at the corner of State and Randolph differently now. It’s no longer about who can build the biggest, flashiest box. It’s about "micro-fulfillment" and smaller footprints.
The 151 N State Walgreens faced a "perfect storm" of issues:
- Sky-high Rent vs. Lower Volume: When you have two floors, you need double the staff and double the security. If the second floor isn't driving massive revenue, it becomes a liability.
- Safety Concerns: Like many urban retailers, the State Street corridor struggled with a perceived (and sometimes very real) increase in retail theft. Managing a two-story entrance/exit point is a security nightmare compared to a small, single-floor shop.
- The Rise of Delivery: Why walk to State Street when you can DoorDash your prescriptions? The "experience" of a fancy Walgreens wasn't enough to beat the convenience of an app once the novelty wore off.
Local real estate experts, including those from firms like Cushman & Wakefield, have noted that the "flagship era" is largely over for pharmacies. They are retreating to their core business: health and wellness. A juice bar at 151 N State Walgreens was cool in 2014, but in 2026, people just want their vaccines and their heart medication without navigating a maze of luxury perfumes.
The Real Estate Ripple Effect
When a tenant that large leaves, it creates a "dark" corner. This isn't just bad for the landlord; it's bad for the vibe of the whole block. 151 N State is a prime piece of the "Village and Block 37" ecosystem. When it went dark, it meant fewer eyes on the street and less reason for people to walk down that specific stretch of Randolph.
The building itself has a history. It's the old Reliance Building’s neighborly area, steeped in Chicago architectural significance. Seeing it boarded up or covered in "For Lease" signs felt like a punch in the gut to locals who remember when State Street was "that Great Street."
What Most People Get Wrong About the Closing
A lot of folks think the 151 N State Walgreens closed solely because of crime. That’s a simplified narrative that doesn't hold up under actual business scrutiny. While "shrink" (the industry term for theft) is a real problem for Walgreens—CEO Rosalind Brewer and other execs have addressed this in earnings calls—the closure was more about a shift in corporate DNA.
Walgreens Boots Alliance is pivotting hard toward healthcare services. They bought VillageMD. They are trying to become a doctor's office, not a snack shop. A massive flagship store at 151 N State doesn't fit a healthcare-first model. It’s too much "retail" and not enough "clinic."
What Happens to the Corner of State and Randolph Now?
The vacancy at 151 N State Walgreens represents a broader challenge for Chicago. How do you fill 27,000 square feet in a post-flagship world?
We are starting to see "medtail"—a mix of medical offices and retail—take over these types of spaces. Or, more likely, the space will eventually be subdivided. The days of one single brand taking over that entire corner are probably over. You'll likely see a smaller retail presence on the ground floor and something entirely different—perhaps specialized office space or a fitness concept—on the upper levels.
Chicago’s Department of Planning and Development has been pushing for more residential conversions in the Loop. While 151 N State specifically is a retail-heavy structure, the surrounding buildings are slowly turning into apartments. Eventually, this will create a 24/7 population that might actually need a pharmacy again, just maybe not one that sells hand-carved sushi.
Actionable Insights for Navigating the "New" Loop
If you’re a former regular of the 151 N State Walgreens or a business owner looking at the Chicago market, here is how you should handle the current landscape:
- Don't rely on the "Old" Flagships: If you need a Walgreens in the Loop, the locations at 2 N. State St. or 401 N. Michigan Ave. are your closest bets. Check the hours before you go; many Loop pharmacies have significantly scaled back their evening and weekend availability.
- Watch the "Small Format" Trend: If you’re a retail investor, look at how brands like Target and Wayfair are using "small-format" stores nearby. This is the future of State Street.
- Use the Pedway: If you’re mourning the loss of the easy-access 151 N State Walgreens during the winter, remember that much of the Loop’s retail is shifting "underground" or into connected mall spaces like Block 37 to avoid the elements and high street-level rents.
- Verify Pharmacy Records: If you had a prescription at the 151 N State location, it was likely transferred to the 2 N. State Street store. It’s worth calling their pharmacy line to ensure your insurance and refill info moved over correctly, as these mass transfers can sometimes glitch.
The closure of 151 N State Walgreens was an end of an era, for sure. It was a bold experiment in "luxury retail pharmacy" that simply couldn't survive a global pandemic and a shift in how we buy our toothpaste. It’s a lesson in the fragility of the flagship model. While the glass windows might be empty for now, the corner of State and Randolph is too valuable to stay that way forever. It’s just waiting for the next version of "the future" to move in.