Walgreens pharmacy chain said Tuesday it decided to close about 1200 drug stores including 3 in North Carolina across the United States by 2027. Walgreens has faced strong challenges in recent years due to strong competition from online retailers such as Amazon.
Now, Walgreens has been focusing on enhancing its digital presence, expanding health services Walgreens has been focusing on enhancing its digital presence, expanding health services, and forging partnerships, such as with healthcare providers.
Walgreens announced
Walgreens announced the closures of stores in June, But At that time company had over 8,000 locations in the United States. So the company had not disclosed the number of affected stores at that time.
Walgreens announced Tuesday that 500 of the closings would occur over the next year. It estimates that 8,700 drug stores in the U.S. are unprofitable.
The company said in a statement that as part of a “footprint optimization program,” there will be about 1,200 closures around the country until 2027. That includes about 500 store closures in the fiscal year 2025, which will “immediately” provide the company with some “free cash flow.”
Walgreens said in the statement
“Our financial results in the fiscal fourth quarter and full year 2024 reflected our disciplined execution on cost management, working capital initiatives, and capex reduction,”
Wentworth said “We are confident it will yield significant financial and consumer benefits over the long term,”
Wentworth, who was named chief executive officer in 2023 stated, that in the next fiscal year, the company will focus on stabilizing its retail pharmacy by:
- optimizing [the company’s] footprint
- Controlling operating costs
- Improving cash flow
- continuing to address reimbursement models to support dispensing margins and preserve patient access for the future.
Tim Wentworth, Walgreens CEO states
Tim Wentworth, Walgreens CEO states “This turnaround will take time, but we are confident it will yield significant financial and consumer benefits over the long term,”
Walgreens executive says ‘maybe we cried too much last year’ about theft
Walgreens states in a statement “We share a deep commitment to offering equitable access to healthcare in the communities we serve…Our priority is to ensure a smooth transition for our customers and team members during that time”
CEO Tim Wentworth gave investors ideas of where Walgreens is shifting its focus next. Health and beauty and women’s health. It certainly hasn’t taken advantage of very strong areas of growth in the US, like premium beauty.
in October, CVS said it was cutting about 2,900 jobs across the United States as part of a cost-savings program, according to a statement. Those layoffs will mainly impact corporate jobs and will represent fewer than 1 percent of the company’s workforce.
The reductions, part of CVS’s previously announced plan, would primarily impact corporate roles and not frontline jobs in stores, pharmacies, and distribution centers, it said.
The Associated Press and Reuters contributed to this report.