Walgreens to Close 1,200 U.S. Stores

Walgreens Boots Alliance has announced plans to close 1,200 stores in the U.S. over the next three years as part of a strategic effort to stabilize its operations after reporting a significant $3 billion quarterly loss. The closures, which will include about 500 stores in the current fiscal year, come amid rising operational costs and increased competition from retail giants like Amazon and Walmart, with analysts noting that around a quarter of Walgreens' 8,700 stores are unprofitable. CEO Tim Wentworth emphasized the need for a 'rebasing year' in fiscal 2025 to implement these changes, which are expected to improve profitability and cash flow. The company is also reevaluating its healthcare business, including potential divestments of its VillageMD clinics, as part of broader operational adjustments. Walgreens' stock has seen a drastic decline, trading near 30-year lows, reflecting the struggles faced by the chain in adapting to market pressures and evolving consumer behavior. The overall landscape for pharmacy chains is challenged as online prescription services gain popularity, impacting traditional brick-and-mortar sales.