Walgreens to Close ‘Significant’ Number of Stores

Money Bizwiz Team
2 Min Read

Walgreens Announces Closures of Underperforming Stores

Walgreens, a renowned pharmacy chain, has recently declared plans to shut down a significant number of underperforming stores nationwide. The decision comes in light of the unsustainable nature of the current pharmacy model, according to CEO Tim Wentworth.

Wentworth revealed during an earnings call that approximately 25% of Walgreens’ 8,600 stores will undergo scrutiny over the next three years, potentially leading to the closure of 2,150 outlets. This strategic move is aimed at adapting to changing consumer behavior and market dynamics.

With the steep decline in Walgreens Boots Alliance stock following the release of its fiscal Q3 2024 earnings, which reported $36.4 billion in revenue, the company faces additional challenges. A $2.7 billion tax bill from the IRS, related to transfer pricing issues between 2014 and 2017, further adds to the company’s financial strain.

Despite these setbacks, Walgreens remains confident in its ability to navigate through these hurdles and defend its position on the tax matter. The company’s stock performance, down nearly 59% year over year, reflects the turbulent times faced by the pharmacy giant.

As Walgreens embarks on a path of restructuring and cost-cutting, it aims to emerge stronger and more resilient in an ever-evolving market landscape.

Related: Discover more about Walgreens’ future plans and initiatives.

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