Friday, July 26, 2024

Walgreens Is Closing Thousands of Stores by 2027

Walgreens is closing up to a quarter of its 8,600 stores within the United States.

Walgreens CEO Tim Wentworth recently explained to the Wall Street Journal on June 27 that the closures would focus on locations that aren't profitable, too close to each other or stores struggling with theft.

Stores like CVS and Rite Aid have similarly experienced declining profits because of lower reimbursement rates for prescription drugs.

While the company didn't announce a specific number of store closures, Walgreens reps said that they plan "Significant" closures of underperforming stores across America.

According to CNN, 75% of the company's U.S. stores account for 100% of its operating income.

The company will examine the remaining 25% of its 8,600 stores for closure.

Though Wentworth confirmed that the company will close a number of its underperforming stores, he added that other locations could be shifted to profitability. 

https://finance.yahoo.com/news/walgreens-closing-91-stores-heres-120000763.html

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