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Pharmacy giant Walgreens plans to close at least 1,200 stores over the next three years as it looks to cut costs and turn around its operations under new leadership.
Walgreens, one of the nation's largest drugstore chains, is targeting 900 to 1,000 stores, primarily across the U.S., by the end of fiscal 2027 as part of its “multi-year store footprint optimization program.” said. Approximately 500 stores are scheduled to close as early as 2025.
Walgreens pays $106.8 million for billing government for unfilled prescriptions
In June, the company announced its intention to close a “significant” number of unprofitable stores in the United States. Profitability challenges and declining profit margins. However, CEO Tim Wentworth, who took over in October 2023, did not immediately provide an estimate of how many stores would be affected. He noted that a “significant proportion” of underperforming stores will close.
Wentworth said in June that there is a “challenging operating environment, including continued pressure on U.S. consumers and the impact of recent market trends that are eroding pharmacy margins.”
People visiting near Walgreens Pharmacy in New York City. (Leonardo Munoz/VIEWpress/Getty Images)
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Wentworth said in Tuesday's latest earnings call that the company's fourth-quarter and full-year results “reflect our disciplined execution in controlling costs.”
A pharmacist works at a computer station at a Walgreens store in Oak Park, Illinois. (Daniel Acker/Bloomberg via Getty Images/Getty Images)
Walgreens reported fiscal fourth-quarter sales of $37.55 billion, up 6% from the year-ago period and beating Wall Street expectations of $35.75 billion.
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The company also reported a net loss of $3 billion, or $3.48 per share, for the quarter.
Walgreens Boost Alliance stock rose more than 4% in premarket trading Tuesday.
| ticker | safety | last | change | change % |
|---|---|---|---|---|
| W.B.A. | Walgreens Boots Alliance, Inc. | 9.00 | -0.21 |
-2.28% |
Wentworth said that in fiscal 2025, Walgreens will “optimize its footprint, manage operating costs, improve cash flow, and continue to work on reimbursement models to support dispensing margins and maintain future patient access.” The company plans to focus on stabilizing retail pharmacies.
