Walgreens to close ‘significant’ number of stores as profits fall

Jun 27, 2024

Lauren Taylor Reporter

By Lauren Taylor (Reporter), Emma Stoltzfus (Video Editor)

Walgreens announced on Thursday, June 27, that it will close a meaningful percent of its 8,600 locations across the country, according to the company’s CEO, Tim Wentworth. The decision came as the chain faces profitability challenges and declining margins.

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Although the exact number of store closures remains unknown, Wentworth stated that the most underperforming stores would be affected. Walgreens has closed 625 stores since February 2024 and reduced prices on over a thousand products in May.

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The decision to close stores is attributed to a difficult working environment, including pressures on consumers and inventory loss due to theft. The pharmacy chain adjusted its profit outlook for the year, expecting earnings per share to be between $2.80 and $2.95, down from the initial forecast of $3.20 to $3.35.

Wentworth emphasized that consumers have become increasingly selective and price-sensitive in their purchases.

Notably, Walgreens is not the only pharmacy chain impacted by market changes. Both Rite Aid and CVS have closed hundreds of locations due to declining profits. Rite Aid even filed for bankruptcy in October.

Tags: Bankruptcy, Pharmaceutical, U.S. Economy, Walgreens

[LAUREN TAYLOR]

WALGREENS WILL BE SHUTTERING “A MEANINGFUL PERCENT” OF ITS 86-HUNDRED LOCATIONS ACROSS THE COUNTRY – THE COMPANY’S CEO -TIM WENTWORTH TOLD THE WALL STREET JOURNAL – CITING PROFITABILITY AND DECLINING MARGIN.

THE EXACT NUMBER OF STORE CLOSURES IS UNKNOWN HOWEVER, WENTWORTH SAID THE CHAIN’S MOST UNDERPERFORMING STORES WOULD BE AFFECTED.

THE COMPANY HAS ALREADY CLOSED 625 STORIES SINCE FEBRUARY – AND LOWERED THE PRICES ON MORE THAN A THOUSAND PRODUCTS IN MAY.

WENTWORTH TOLD THE PAPER – THE DECISION TO CLOSE STORES STEMS FROM A DIFFICULT WORKING ENVIRONMENT – SUCH AS PRESSURES ON THE CONSUMER AND THE LOSS INVENTORY DUE TO THEFT.

THE PHARMACY CHAIN CUT ITS PROFIT OUTLOOK FOR THE YEAR AND EXPECTS ADJUSTED EARNINGS PER SHARE TO BE BEWEEN $2.80 AND $2.95 – DOWN FROM ITS FORECAST OF $3.20 TO $3.35.

WENTWORTH SAID THURSDAY THAT CONSUMERS “HAVE BECOME INCREASINGLY SELECTIVE AND PRICE-SENSITIVE IN THEIR PURCHASES.”

WALGREENS ISN’T THE ONLY PHARMACY CHAIN AFFECTED BY MARKET CHANGES: BOTH RITE AID AND CVS HAVE CLOSED HUNDREDS OF LOCATIONS – CITING A DECLINE IN PROFITS.

RITE AID EVEN FILED FOR BANKRUPTCY IN OCTOBER.

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