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- Walgreens to close 1,200 stores in the US over the next three years.
- The closures follow a June announcement to shut 25% of its US locations.
- Walgreens reported a $3 billion loss in its fourth-quarter fiscal 2024 results.
US pharmacy giant Walgreens announced Tuesday that it will close 1,200 stores across the US over the next three years as part of its turnaround effort; 500 locations will close next year.
The company said earlier this year that it planned to close a "significant" number of its roughly 8,700 locations in the US.
CEO Tim Wentworth told analysts on the firm's quarterly earnings call in June that "changes are imminent" for the 25% of Walgreens stores that were underperforming.
"As the convenient destination for millions of customers ... the store and its digital channels are central to our strategy and consumer experience.
But the customers evolved, demographics and preferences have shifted, and we need to reposition and operate our stores accordingly," he said.
The news of 1,200 closures came as the firm announced its fourth-quarter and full-year results for fiscal 2024, reporting a $3 billion loss during the quarter.
Along with closing unprofitable stores, the pharmacy chain is also dialing back investments in its primary care clinics — VillageMD — as part of its plan to cut costs.
According to an SEC filing from August, Walgreens has previously considered selling all or part of its VillageMD subsidiary.
Walgreens is among the US chains to be closing stores. Analysts at UBS previously estimated that US retail closures alone could reach 45,000 over the next five years, led by smaller stores going out of business.