Walgreens to close 150 US stores and 300 UK stores amid low consumer spending and slow vaccination rates, aiming to save billions.
During this week’s earnings call, CFO James Kehoe disclosed that Walgreens intends to close 150 stores in the United States and 300 stores in the United Kingdom.
The national pharmacy chain reported on Tuesday that its earnings for the most recent quarter came in at $118 million, or 14 cents per share, compared to $289 million, or 33 cents per share, in the same period a year ago. Spending by consumers is at a record low, and fewer people are getting vaccinated against COVID as a result, thus business is slow.
Our Chief Executive Officer, Rosalind Brewer, has stated that we will be increasing our efforts to save money to a total of $4.1 billion and that we will be “taking immediate actions to optimize profitability for our US healthcare segment.”
Kehoe indicated to the analysts that the organization anticipates it will have saved “at least” $800 million in 2024 and will have saved a total of $3.3 billion by the end of current year. These store closings are a part of the company’s endeavor to reduce costs.
According to a spokeswoman for the company, the chain currently has approximately 9,000 outlets in the United States, but it plans to close the remaining 150 sites in the country by the end of its next fiscal year on August 31, 2024.
According to Kehoe, the corporation also got rid of more than 500 roles, which is around 10% of the staff in its corporate and US office support departments. According to him, technological advancements and the company’s aspirations to construct the “pharmacy of the future” would further drive down costs.
“Through our micro fulfillment centers, tech-enabled centralization of in-store activities, and telepharmacy solutions,” Kehoe stated, “we are optimizing the model.”
CNN has requested feedback from Walgreens (WBA), but the company has not yet provided a response nor has it specified which stores will be closing.
No responses yet