Walgreens' official quarterly earnings report

Walgreens to Close 1,200 Stores—14% of U.S. Total—Amid $3B Loss Under New CEO Wentworth

Oct 15, 2024, 03:00 PM

Walgreens Boots Alliance announced plans to close approximately 1,200 stores—about 14% of its 8,700 U.S. locations—over the next three years as part of a strategy to turn around its struggling U.S. business. The closures include 500 stores set to shut down in fiscal 2025 and incorporate 300 stores previously approved under a cost-cutting plan. The decision follows a report of a $3 billion quarterly loss, attributed to sluggish consumer spending and low drug reimbursement rates, with one in four stores deemed unprofitable as of June. Newly appointed CEO Tim Wentworth is leading the turnaround efforts, aiming to optimize the company's store footprint and improve profitability. Despite the announcement, Walgreens' stock rose 7.4% as earnings topped estimates, and the company stated that the closures would be "immediately accretive" to its adjusted earnings and free cash flow.