Current:Home > NewsWalgreens to close 1,200 unprofitable stores across US as part of 'turnaround' -Apex Profit Path
Walgreens to close 1,200 unprofitable stores across US as part of 'turnaround'
Charles Langston View
Date:2025-04-10 17:11:31
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 [email protected]
veryGood! (5)
Related
- Senate begins final push to expand Social Security benefits for millions of people
- Much at stake for Biden as NATO leaders gather in Washington
- Flood watch in Vermont as state marks anniversary of last year’s severe inundations
- Flood watch in Vermont as state marks anniversary of last year’s severe inundations
- The Louvre will be renovated and the 'Mona Lisa' will have her own room
- McDonald's unveils new Kit Kat Banana Split McFlurry: Here's when you can get it
- Millions still have no power days after Beryl struck Texas. Here’s how it happened
- Baltimore bridge collapse survivor recounts fighting for his life in NBC interview
- US wholesale inflation accelerated in November in sign that some price pressures remain elevated
- Baptized by Messi? How Lamine Yamal's baby photos went viral during Euros, Copa America
Ranking
- Former Syrian official arrested in California who oversaw prison charged with torture
- Federal Reserve's Powell says more good data could open door to interest rate cuts
- People are paying thousands for 'dating boot camp' with sex experts. I signed up.
- Las Vegas eyes record of 5th consecutive day over 115 degrees as heat wave continues to scorch US
- McKinsey to pay $650 million after advising opioid maker on how to 'turbocharge' sales
- Las Vegas eyes record of 5th consecutive day over 115 degrees as heat wave continues to scorch US
- Gypsy Rose Blanchard announces she's pregnant: I want to be everything my mother wasn't
- NATO aims to safeguard commitment to Ukraine amid concern about rising right-wing populism
Recommendation
Senate begins final push to expand Social Security benefits for millions of people
Oklahoma State coach Mike Gundy says Ollie Gordon II won't miss any games after arrest
McDonald's brings back Smoky BLT Quarter Pounder with Cheese: See when you can get it
Sha’Carri Richardson will be on cover of Vogue: 'I'm better at being myself'
Juan Soto praise of Mets' future a tough sight for Yankees, but World Series goal remains
What cognitive tests can show — and what they can’t
Why Below Deck Guest Trishelle Cannatella Is Not Ashamed of Her Nude Playboy Pics
Much at stake for Biden as NATO leaders gather in Washington