Walgreens to Close 1.2K US Stores in Revamp

Walgreens plans to shutter approximately 1,200 of its 8,500 US stores over the next three years in a bid to revamp its faltering operations after recently posting a $3 billion quarterly loss. CEO Tim Wentworth announced this move Tuesday as part of a broader recovery strategy, noting that fiscal year 2025, which began in September, will serve as a pivotal "rebasing year." By shuttering 300 outlets that had already been approved for closure and 500 more in the current fiscal year, the company aims to bolster adjusted earnings and enhance cash flow.

These closures come amidst fierce competition from online and retail giants like Amazon and Walmart, coupled with dwindling reimbursement for prescriptions. In light of these challenges, Walgreens has slowed its push to add primary care clinics next to its stores. The company is also reevaluating its VillageMD clinic operations, considering the possibility of selling elements of its US healthcare division. The financial turbulence reflects broader industry trends, with rivals like CVS Health and Rite Aid similarly closing locations. (This story was generated by Newser's AI chatbot. Source: the AP)