Walgreens to Close Significant Number of Underperforming Stores

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Walgreens Boots Alliance Chief Executive Tim Wentworth is steering the struggling chain in a new direction by planning to close a significant number of underperforming stores and scaling back the company's ambitious entry into the primary-care business.

On Thursday, Walgreens announced its intention to shut down a "substantial" number of poorly performing stores across the U.S. due to ongoing profitability challenges and shrinking margins.

These closures are part of the company's multi-year footprint optimization program. While Walgreens has not specified the number of stores affected out of its more than 8,700 locations, CEO Tim Wentworth indicated to The Wall Street Journal that a "meaningful percent" of the underperforming locations would be closed.

In pre-market trading on Thursday, Walgreens shares dropped sharply after the company revised its 2024 profit forecast downward. Over the past year, the stock has plummeted more than 45%.

"We continue to face a challenging operating environment, including persistent pressures on the U.S. consumer and the impact of recent marketplace dynamics that have eroded pharmacy margins," Wentworth stated.


PHOTO: JUSTIN MERRIMAN/BLOOMBERG NEWS

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