Walgreens plans to close about 1,200 locations over the next three years as the drugstore chain seeks to turnaround its struggling U.S. business.
The company said Tuesday, Oct. 15 about 500 store closures will come in the current fiscal year and should immediately support adjusted earnings and free cash flow. Walgreens didn’t say where the store closings would take place.
Walgreens operates about 8,500 stores in the United States and a few thousand overseas. All the stores that will be closing are in the United States.
Walgreens Boots Alliance Inc. leaders said in late June that they were finalizing a turnaround plan for its U.S. business, and that push could result in the closing of hundreds of underperforming stores.
The plan announced Tuesday, Oct. 15 includes the closing of 300 stores that had been approved under a previous cost-cutting plan.
Walgreens CEO Tim Wentworth said in a statement that fiscal 2025, which began last month, will be an important “rebasing year” for the drugstore chain.
“This turnaround will take time, but we are confident it will yield significant financial and consumer benefits over the long term,” he said.
Walgreens, like its competitors, has been struggling for years with tight reimbursement for the prescriptions it sells as well as other challenges like rising costs to operate its stores.
