TROUBLED pharmacy chain Walgreens has announced it is to shutter more stores in the next few weeks.
Walgreens plans to close 1,200 of its 8,000 stores (stock image)[/caption]
Walgreens Boots Alliance CEO Tim Wentworth announced the closures as part of a new business strategy for the retailer[/caption]
Five stores in Chicago will close for good in February.
These are the latest locations to go in a series of closures announced by the company last October.
CEO of Walgreens Boots Alliance, Tim Wentworth, revealed a number of stores would be cut as part of a turnaround strategy designed to improve the fortunes of the retailer.
His plans also include letting go a number of executives and instigating a $1 billion cost-cutting program.
All of the Chicago stores will close between February 17 and February 27.
A Walgreens spokesperson told The US Sun: “Our retail pharmacy business is central to our go-forward business strategy.
“However, increased regulatory and reimbursement pressures are weighing on our ability to cover the costs associated with rent, staffing, and supply needs.”
The company previously announced a total of 1,200 locations would go in the three years up to 2027 – with 500 stores earmarked for closure this year.
Closing stores was not an easy decision, said the spokesperson.
“We know that our stores are important to the communities that we serve, and therefore do everything possible to improve the store performance.
“When closures are necessary, like those here in Chicago, we will work in partnership with community stakeholders to minimize customer disruptions.”
The spokesperson also confirmed the company intends to redeploy the majority of team members from the shuttered stores.
FINANCIAL RESULTS
Walgreens announced its first quarter results for 2025 last week, including increased sales of 7.5% year over year.
Wentworth commented: “Our first quarter results reflect our disciplined execution against our 2025 priorities: stabilizing the retail pharmacy by optimizing our footprint, controlling operating costs, improving cash flow and continuing to address reimbursement models.
Walgreens Chicago closures
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Source: Walgreens
“While our turnaround will take time, our early progress reinforces our belief in a sustainable, retail pharmacy-led operating model.”
Net loss was $265 million compared to $67 million net loss in the first quarter last year.
This was mainly driven by higher operating loss, said the company.
As of August 2024 Walgreens had more than 8,000 locations across the country.
One in seven of these will have closed down by 2027.
A few days ago it was revealed that 12 stores in San Francisco would close for good next month.
While just after Christmas the company announced the shuttering of three locations in Sacramento.
