Walgreens to be Closing Thousands Of Stores
Walgreens is planing to close a considerable number of its 8,600 stores which includes stores in Minnesota and Iowa.
If the company were to close 25% of its 8,600 U.S. stores, it would mean shutting down approximately 2,150 locations.
"Approximately 25% of Walgreens stores are not contributing to our long-term strategy. We’re finalizing an optimization program that we expect will include closing a significant portion of these locations over the next three years. We are also taking a series of actions and making investments to enhance the customer and patient experience.
While we cannot announce any specific closures right now, when we make the decision to close a store, we have processes in place to ease the transition for the communities affected." Walgreens said in a statement.
CBS News is reporting that during an investors call on Thursday Walgreens CEO Tim Wentworth told investors... "The current pharmacy model is not sustainable. Changes are imminent.
Walgreens does itself no favors in this environment by having a lackluster proposition and broadly uncompetitive prices compared to mass merchants.
It is no good executing selective promotions, which the chain did over the past quarter, there needs to be a more fundamental overhaul of the retail offer."
Wentworth, who assumed leadership in 2023, revealed that 75% of the company's U.S. stores generate all of its adjusted operating income.
As a result, Walgreens plans to evaluate the remaining 25% of its stores for potential closures over the next three years.
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