Walgreens is closing 1,200 stores

Walgreens plans to close at least 1,200 stores over the next three years as the pharmacy giant tries to cut costs and turn around operations under a new leader.

Walgreens, one of the country's largest drugstore chains, said it plans to close about 500 stores as early as fiscal 2025.

WALGREENS TO PAY $106.8 MILLION FOR CLAIMS BILLED TO THE GOVERNMENT FOR NEVER-ISSUED PRESCRIPTIONS

In June, the company announced its intention to close what it said was a “significant” number of underperforming stores across the United States Profitability problems and falling margins. But CEO Tim Wentworth, who took over in October 2023, gave no estimate at the time of how many stores would be affected. He noted that a “significant percentage” of underperforming locations would close.

Wentworth said in June that there was a “difficult operating environment, including ongoing pressures on the U.S. consumer and the impact of recent market dynamics that have led to weakening pharmacy margins.”

People make their way near a Walgreens pharmacy in New York City. (Leonardo Munoz/VIEWpress/Getty Images)

WALGREENS lowers prices on 1,300 products

In its most recent earnings report on Tuesday, Wentworth said the company's fourth-quarter and full-year results “reflect our disciplined execution of cost management.”

A pharmacist works at a computer station at a Walgreens store in Oak Park, Illinois. (Daniel Acker/Bloomberg via Getty Images / Getty Images)

Walgreens reported fiscal fourth-quarter revenue of $37.55 billion, up 6% from the same period last year and beating Wall Street estimates of $35.75 billion.

GET FOX BUSINESS ON THE GO by CLICKING HERE

The company also reported a net loss of $3 billion, or $3.48 per share, for the quarter.

Shares of Walgreens Boost Alliance rose more than 4% in premarket trading on Tuesday.

In fiscal year 2025, Wentworth said Walgreens will “focus on stabilizing the retail pharmacy business by optimizing our footprint, controlling operating costs, improving cash flow and continuing to address reimbursement models to support dispensing margins and maintain patient access going forward.” “