In This Story
Walgreens (WBA-12.18%) announced Tuesday that it will close another 1,200 stores in the U.S. as it tries to stem hemorrhaging losses.
The pharmacy chain, which reported a $3 billion quarterly loss, said the closures will happen over the next three years. It did not specify which stores would be shutting down but said 500 of the stores will close in its 2025 fiscal year.
Walgreens operates around 8,500 stores in the U.S. and had announced in late June it would shutter a significant number of them. The chain has said about a quarter of its U.S. stores aren’t profitable.
The company has been struggling amid fierce competition and lowering sales, but announced $37.6 billion in revenue for its 4th quarters, a 6% increase from last year.
Tim Wentworth, CEO of Walgreens Boots Alliance, said in a statement Tuesday that he believes the company is on the right path in its recovery.
Wentworth said that “Fiscal 2025 will be an important rebasing year as we advance our strategy to drive value creation.”
“This turnaround will take time, but we are confident it will yield significant financial and consumer benefits over the long term,” he added.
While Walgreens says the closures are necessary for the long-term health of its company, some advocates and politicians have sounded the alarm that they could increase “pharmacy deserts.”
Massachusetts Sens. Ed Markey and Elizabeth Warren questioned Wentworth about the closures and how they will affect low-income communities earlier this year, according to Axios. Wentworth did acknowledge the closures could worsen the problem, but said Walgreens has often been the last pharmacy to leave the area, which isn’t a policy that’s good for business, Axios reported.