Walgreens expects to close 150 US stores, CFO says
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(NEXSTAR) – Dozens of Walgreens locations in the U.S. will likely close as the pharmacy retail chain continues to undergo cost-saving initiatives.
The company expects to close 150 stores in the U.S. and another 300 in the U.K., executive vice president and global chief financial officer James Kehoe said during last week’s third-quarter earnings call with investors.
Walgreens hasn’t announced what stores will be closing or when closures could begin. A representative for the company tells Nexstar no additional information is available at this time.
There are nearly 9,000 Walgreens stores in the U.S., roughly 1,100 of which are now open for reduced operating hours, chief executive officer Roz Brewer said during the earnings call.
Recently, Walgreens underwent “an organization restructuring,” which led to the company eliminating more than 500 roles, or about 10% of its corporate and U.S. support office workforce.
Brewer noted Walgreens’ third quarter performance “did not meet our overall expectations.”
“We have seen changing market trends that have consumers prioritizing value in response to a more uncertain and challenging economic environment,” she explained, later commenting that Walgreens is “closely watching emerging challenges to consumer spending and sentiment, such as the end of fiscal stimulus and the resumption of student loan payments.”
The company also acknowledged a downturn in the need for COVID testing and vaccines, as well as a “weaker respiratory season.”
Walgreens isn’t the first retailer this year to experience store closures.
This spring, Walmart closed multiple stores across the U.S., citing profit margins.
Americans have also seen a handful of beloved stores shutter in the face of bankruptcy filings, including Bed Bath & Beyond, Tuesday Morning, Party City, and David’s Bridal.
Meanwhile, consumers seem to be increasingly turning to dollar stores, with chains like Dollar Tree, Dollar General, and Family Dollar standing as some of the fastest-growing U.S. retailers.
NewsNation’s Kelsey Kernstine contributed to this report.
