By ChinRes 
As the convenience store and drugstore behemoth Walgreens announces plans for widespread closures throughout the country, the list of big retail businesses that are shutting sites continues to increase despite the fact that the list is already rather extensive.
On October 15, the firm said that it intended to further reduce its footprint by closing around 1,200 locations over the course of the next three years. This announcement was made during an earnings call. It is anticipated that the first 500 units would be shut down during the fiscal year 2025, which started in September. No information on the locations of the affected establishments was provided by the firm.
The firm is struggling with issues like as delayed expenditure and poor prescription reimbursement rates, according to Reuters, and the closures are a part of the company’s efforts to turn around because of these challenges.
The retail pharmacy business is at the center of Walgreens’ “go-forward business strategy,” according to a statement. Walgreens also mentioned that increased regulatory and getting reimbursed pressures are putting a strain on the company’s ability to cover its expenses associated with rent, staffing, and supply requirements.
Closing a shop is never a choice that is made without difficulty. As a result of the fact that we are aware of the significance of our shops to the communities that we serve, we are making every effort to enhance the performance of our stores, as stated in the statement. “In the event that closures are required, we will collaborate with community stakeholders to ensure that the maximum amount of disruption to our customers is avoided.”
It is our intention to reassign the bulk of our team members from the many shops that we will be closing.
Tim Wentworth, the chief executive officer of Walgreens Boots Alliance, announced in June that the business will close a “significant portion” of locations that are not operating well over the course of the next three years. A quarter of the business’s stores were not operating up to expectations, according to the corporation, but the specific number was not disclosed.
Although Walgreens maintains more than 8,000 shops in the United States at the present time, Wentworth estimates that around 6,000 of those stores are profitable.
“Fiscal responsibility 2025 will be a crucial rebasing year as we continue our strategy to drive asset creation,” Wentworth stated in a release on the company’s performance. “This transformation necessitates time, yet we are confident it will produce substantial economic and customer benefits in the long run.”
During the most recent quarter, Walgreens has recorded a loss of $3 billion, despite the fact that sales have climbed by 6%.
Walgreens had already announced the closure of a significant number of shops. The firm announced in June 2023 that it will be closing 450 sites by the end of August 2024, with 150 of those locations located in the United States and 300 located in the United Kingdom.
Among the many drugstore businesses that are experiencing difficulties, Walgreens is one of them. CVS made the announcement earlier this month that it will be implementing a cost-cutting plan that will result in the termination of around 2,900 workers. 2021 was the year when the drugstore chain announced that it will be closing 900 sites over the course of the subsequent three years.
During this time, Rite Aid has just emerged from bankruptcy, having closed more than 520 sites since the filing of the bankruptcy petition in October of 2023.