Walgreens plans to close 1,200 of its U.S. stores as the pharmaceutical chain tries to offset a reported $3 billion quarterly loss.
Roughly 500 of the closings are set for the current fiscal year, according to The Associated Press. It’s not clear where those closures will occur. Walgreens operates around 8,500 stores across the country.
The retailer said it expects those cuts to quickly yield higher earnings. Investors responded positively to the news and Walgreens shares were up on Tuesday.
CEO Tim Wentworth reportedly said that about 6,000 Walgreens operations are profitable. The company’s challenges include competition from online retailers.
Walgreens began in Chicago, Ill., in 1901 when pharmacist Charles R. Walgreen Sr. purchased the drugstore where he worked. Within 25 years, there were 100 locations incorporated as Walgreens Co., according to the company’s facts page. Walgreens stores take credit for inventing the malted milkshake in 1922.
Walgreens’ parent company, Walgreens Boots Alliance, Inc., also counts Duane Reade and No7 Beauty among its properties.
Brick-and-mortar operations find themselves having to make adjustments to keep up with the time. 7-Eleven recently announced it would close more than 400 of its underperforming convenience stores.
With News Wire Service