Current:Home > ContactWalgreens to close 1,200 unprofitable stores across US as part of 'turnaround' -Wealth Momentum Network
Walgreens to close 1,200 unprofitable stores across US as part of 'turnaround'
View
Date:2025-04-13 12:46:34
Correction: An earlier version of this story incorrectly characterized the portion of last quarter's loss that was due to goodwill impairment charges.
Walgreens is closing approximately 1,200 stores across the United States as the pharmacy chain struggles with slumping consumer spending.
The closures will occur within the next three years, starting with 500 stores being shuttered in fiscal year 2025, Walgreens announced Tuesday in an earnings report. The company had confirmed plans in June to USA TODAY to close unprofitable stores but had not disclosed how many locations would be affected.
The move is part of a multi-year cost-cutting program under CEO Tim Wentworth, who took on the job last year. In a statement, Wentworth reiterated the company's commitment to focusing on improving its core business: retail pharmacy.
"This turnaround will take time, but we are confident it will yield significant financial and consumer benefits over the long term," Wentworth said in the statement.
True Value bankruptcy:Store files for bankruptcy after 75 years, selling to hardware rival Do it Best
Walgreens to close 13% of stores in U.S.
While it's not immediately clear which 1,200 stores Walgreens is planning on closing, the move would impact about 13% of the more than 8,700 stores that were open in the United States as of Aug. 31 last year.
The announcement comes amid an improving – but still challenging – fiscal year 2024.
While Walgreens exceeded its target of slashing $1 billion in costs in the last fiscal year, the chain reported a $3 billion loss last quarter. Still the chain's revenue in the last fiscal year rose more than 6% from the a year ago, according to the company's earnings report.
Fourth-quarter sales in the retail pharmacy sector reached $29.5 billion, an increase of 6.5% from the same quarter a year ago.
Drug store chains struggle with declining sales
News of the impending closures come as Walgreens and other drugstore chains struggle to keep up with competition from Amazon, as well as declining drug reimbursement rates from middlemen for filling prescriptions.
CVS has laid off thousands of corporate and other employees since 2023 while dealing with "continued disruption, regulatory pressures, and evolving customer needs," a spokesman previously told USA TODAY. Since declaring bankruptcy about a year ago, Rite Aid has closed hundreds of stores across the U.S. after struggling for years to keep up with its larger competitors.
But drug stores aren't the only businesses facing declining sales amid rising prices and a downturn in consumer spending.
Just this week, hardware wholsaler True Value became the latest chain to file for bankruptcy since the COVID-19 pandemic, joining LL Flooring, Red Lobster,Bed Bath & Beyond and Big Lots, which has since shuttered hundreds of stores since it announced its bankruptcy proceedings in July.
A host of others, including Hooters, Walgreens, Sears, Kmart, J.C. Penney, and even Disney Stores, are among those that have shuttered stores across the nation since 2020.
This story has been updated to fix a typo.
Contributing: Gabe Hauari, USA TODAY; Reuters
Eric Lagatta covers breaking and trending news for USA TODAY. Reach him at elagatta@gannett.com
veryGood! (7)
Related
- The FBI should have done more to collect intelligence before the Capitol riot, watchdog finds
- Massachusetts Utilities Hope Hydrogen and Biomethane Can Keep the State Cooking, and Heating, With Gas
- This cellular atlas could lead to breakthroughs for endometriosis patients
- Love Island USA Host Sarah Hyland Teases “Super Sexy” Season 5 Surprises
- Meet first time Grammy nominee Charley Crockett
- Shawn Johnson Is Pregnant, Expecting Baby No. 3 With Husband Andrew East
- This Automatic, Cordless Wine Opener With 27,500+ 5-Star Reviews Is Only $21 for Amazon Prime Day 2023
- 'Hospital-at-home' trend means family members must be caregivers — ready or not
- What do we know about the mysterious drones reported flying over New Jersey?
- Illinois Clean Energy Law’s Failed Promises: No New Jobs or Job-Training
Ranking
- Off the Grid: Sally breaks down USA TODAY's daily crossword puzzle, Triathlon
- Amazon Prime Day 2023 Deals That Make Great Holiday Gifts: Apple, Beats, Kindle, Drybar & More
- NOAA Climate Scientists Cruise Washington and Baltimore for Hotspots—of Greenhouse Gases and Air Pollutants
- Shocked by those extra monthly apartment fees? 3 big rental sites plan to reveal them
- Macy's says employee who allegedly hid $150 million in expenses had no major 'impact'
- Corn Nourishes the Hopi Identity, but Climate-Driven Drought Is Stressing the Tribe’s Foods and Traditions
- Illinois Clean Energy Law’s Failed Promises: No New Jobs or Job-Training
- Citing Health and Climate Concerns, Activists Urge HUD To Remove Gas Stoves From Federally Assisted Housing
Recommendation
Tree trimmer dead after getting caught in wood chipper at Florida town hall
In a Famed Game Park Near the Foot of Mount Kilimanjaro, the Animals Are Giving Up
Raven-Symoné Reveals How She Really Feels About the Ozempic Craze
Louisiana Regulators Are Not Keeping Up With LNG Boom, Environmentalists Say
Taylor Swift makes surprise visit to Kansas City children’s hospital
Las Vegas could break heat record as millions across the U.S. endure scorching temps
Zayn Malik's Call Her Daddy Bombshells: Gigi Hadid Relationship, Yolanda Hadid Dispute & More
As seas get hotter, South Florida gets slammed by an ocean heat wave