Walgreens plans to close 450 stores this year
Walgreens continues to close stores as part of its turnaround plans.
A reduction in Walgreens locations is in effect. Walgreens plans to close about 1,200 underperforming stores across the U.S. in October 2024 as a strategy to offset declining profits due to lower drug reimbursement rates and lower retail sales.
The strategy made sense, because 25% of Walgreens stores “are not currently contributing to our long-term strategy,” Walgreens Boots Alliance Inc. CEO Timothy Wentworth said in a June 2024 call with investment analysts. The company’s quarterly financials.
Those 1,200 stores will close over three years, with about 500 closing by the company’s fiscal year 2025, which ends in August 2025. Walgreens said..
The company closed 70 stores in the first quarter of fiscal 2025, which ended Nov. 30, 2024, Wentworth said on an analyst conference call Friday. Walgreens in 2010 It plans to close about 450 stores by the end of 2025, it said.
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Walgreens, which has about 8,500 locations in the U.S. (and more than 3,600 Boots-branded stores in the U.K. and elsewhere), has closed about 2,000 locations over the past decade, Wentworth said. “We expect to significantly increase our store closing rate starting in the first quarter,” he said.
“When you look at our stores, the stores that aren’t on the closing list, we see those stores that are materially stronger, still not what they need to be, but they’re materially stronger than the stores that we’re closing,” Wentworth said.
Investors seem impressed with the company’s progress on its $1 billion cost-cutting program. Shares of Walgreens Boots Alliance rose 35% after reporting Q1 financials on Jan. 10.
Walgreens did not provide details of stores slated to close in the coming days. But reports of Walgreens stores closing in February are mounting.
Among the closures: a place within Tallahassee It will be closed until February 25, reported in the Tallahassee Democrat and in a Quincy, Massachusetts (Feb. 27) according to The Patriot Ledger, part of the USA Today Network, a Democrat.
Other areas that will be closed include:
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Augusta, GeorgiaA store is going to close on February 20, it was reported by WRDW and WAGT news.
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Chicago: Five locations closing between February 17 and February 27; It was reported by WGN.
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Oakland, CaliforniaTwo stores, one will close on February 24, the other on February 27, reported by KTVU.
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Rockford, IllinoisA store is going to close on February 19, it was reported by WTVO.
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San Francisco: A dozen locations are said to be closed from February 24-27. San Francisco Standard He reported.
