Walgreens To Shutter ‘Significant’ Number of Underperforming Stores In U.S. – One America News Network

FILE PHOTO: Pigeons are seen resting on signage for Walgreens, owned by the Walgreens Boots Alliance, Inc., in Manhattan, New York City

OAN’s Brooke Mallory
1:50 PM – Thursday, June 27, 2024

On a conference call with industry analysts on Thursday, Walgreens CEO Tim Wentworth announced the company’s intention to eliminate a significant portion of its U.S. stores over the next three years.


While describing a quarter of the 8,500 stores as “underperforming,” Wentworth announced that the company would close a “significant portion” of these locations.

However, according to Wentworth, the precise number of closures is still undecided.

Wentworth also stated that Walgreens will implement certain modifications at the remaining underperforming locations in an effort to bring them back to life. If that doesn’t work, then “we will continue to consider closure if they don’t improve,” he added.

The news comes almost seven months after the company started a thorough examination of the company’s operations in reaction to concerns about stealing, consumer spending, and unfavorable developments in the pharmacy sector.

“Everything has been on the table,” Wentworth said. “We are at a point where the current pharmacy model is unsustainable.”

According to an earnings release on Thursday, the company reported $28.5 billion in revenue over the last three months, ending in May, which represented a small rise over the same time a year ago. However, the corporation stated that despite this, the resulted earnings fell very short of its expectations.

A prolonged period of high pricing that has put pressure on household budgets has left price-conscious consumers weary, contributing to the company’s current issues in the U.S. market.

“Our customers have become increasingly selective and price-sensitive in their purchases,” Wentworth said. “We continue to have active discussions with PBM and supplier partners,” he added.

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Brooke Mallory
Author: Brooke Mallory

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