Walgreens has revealed plans to shut down 450 stores, with 150 in the United States as part of a $4.1 billion cost-reduction strategy. These closures, which are expected to be completed by August 31, 2024, will reportedly save the company an estimated $800 million in the following year.
The announcement follows a severe decrease in year-over-year earnings for the third quarter. The company reported earnings of $118 million, a significant decline from the $289 million of the previous year. Walgreens CEO Rosalind Brewer attributed the revenue decline to a reduction in demand for COVID vaccines and tests, along with a general decrease in consumer spending.
The exact locations of the stores to be closed remain undisclosed. However, Walgreens expects the closure process to be fully executed by the end of August 2024. As the company navigates through a challenging macroeconomic environment, these measures aim to offset losses and streamline operations.
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