Health & Fitness
Walgreens Closing 'Significant' Number Of U.S. Stores: CEO
The Deerfield-based pharmacy giant said Wednesday it is finalizing a multi-year program to close underperforming stores.
DEERFIELD, IL — Following the release of its third quarter financial report, Walgreens Boots Alliance announced Wednesday it is finalizing a "significant multiyear footprint optimization program" to close underperforming Walgreens stores in the United States.
WBA, headquartered at 108 Wilmot Road, oversees approximately 8,600 Walgreens and Duane Reade stores in the U.S.
"We continue to face a difficult operating environment, including persistent pressures on the U.S. consumer and the impact of recent marketplace dynamics, which have eroded pharmacy margins," said Tim Wentworth, CEO of WBA, in the company's third quarter results report. "Our results and outlook reflect these headwinds, despite solid performance in both our International and U.S. Healthcare segments."
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In an interview with the Wall Street Journal, Wentworth said WBA will close a "significant share" of its U.S. stores.
According to the third quarter report, WBA sales increased 2.6 percent from the year-ago quarter to $36.4 billion, an increase of 2.5 percent on a constant currency basis, "reflecting sales growth across all segments."
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The company announced last October it would be implementing cost-cutting measures to the tune of at least $1 billion. In the last year, WBA has had several rounds of corporate layoffs.
"Informed by our strategic review, we are focused on improving our core business: retail pharmacy, which is central to the future of healthcare," Wentworth said. "We are addressing critical issues with urgency and working to unlock opportunities for growth. Many of these actions will take time, but I am confident that we have the right team and the right strategy to lead a business turnaround for the Walgreens that our customers and patients need."
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