Walgreens, a prominent pharmacy chain in the United States, announced its plans to shut down a significant number of underperforming stores as part of a strategic repositioning. This decision comes after Walgreens Boots Alliance, the parent company, disclosed the news in its 2024 third-quarter fiscal results. Approximately 25% of the chain’s stores are not aligning with its long-term goals, prompting the company to initiate a program to close a significant portion of these locations over the next three years.
CEO Tim Wentworth stated that Walgreens anticipates weaker consumer spending for the remainder of the year, leading to the store closures. While the company has not finalized the exact number of stores to be shut down, Walgreens currently operates around 8,700 outlets across 50 states, the District of Columbia, Puerto Rico, and the U.S. Virgin Islands. Additionally, Walgreens plans to lessen its ownership stake in primary-care provider VillageMD to concentrate on enhancing its retail pharmacy business and enhancing the overall customer experience through a newly unveiled “retail pharmacy action plan.”
Wentworth assured that efforts will be made to reassign employees so that the reduction in the U.S. retail footprint does not result in significant job losses. Despite these changes, the company remains committed to strengthening its core business and improving its position within the retail pharmacy sector. By implementing these strategic initiatives, Walgreens aims to adapt to evolving consumer trends and secure its position as a leading pharmacy retailer in the competitive market.
