Get updates delivered to you daily. Free and customizable.
Apple Valley News Now
Walgreens will close a ‘significant’ number of its 8,600 US locations
By By Jordan Valinsky, CNN,
6 days ago
NEW YORK — Walgreens is set to close a substantial number of its roughly 8,600 locations across the United States as the company looks to reset the struggling pharmaceutical chain’s business.
The company didn’t announce a specific number of store closures, but it said Thursday that it is planning “significant” closures of underperforming stores across America as part of a multiyear optimization program.
CEO Tim Wentworth said in an interview with the Wall Street Journal that the store closures would make up a “meaningful percent” of the quarter-or-so locations that are underperforming. The closures would focus on locations that aren’t profitable, too close to each other or stores struggling with theft, Wentworth told the Journal.
Walgreens’ shares fell nearly 9% in premarket trading, which also announced during its earnings that it has slashed its full-year profit outlook.
“We continue to face a difficult operating environment, including persistent pressures on the US consumer and the impact of recent marketplace dynamics which have eroded pharmacy margins,” Wentworth said in a press release. “Our results and outlook reflect these headwinds.”
Major drugstore chains, including CVS and Rite Aid, have struggled in recent years because of declining profits from filling prescriptions. They’ve declined because of lower reimbursement rates for prescription drugs and new competition from Amazon.
The front end of drugstores, where they sell snacks and household staples, also face pressure from larger competitors, including Target and dollar stores.
Hooters is the latest chain to close dozens of locations across the United States, blaming tough economic challenges including rising food and labor costs.
If there’s anything Americans love, it’s cheap meat. So business is booming at Texas Roadhouse and LongHorn Steakhouse, even as Americans pull back elsewhere.
Rather than vie for customers with steep discounts, Olive Garden is planning to bring people in by highlighting its regular offerings. One example? Refills for soup or salad and breadsticks.
The new list of locations in danger of closing was revealed in court filings last week, and all could be shuttered if they can’t renegotiate their leases.
Get updates delivered to you daily. Free and customizable.
Welcome to NewsBreak, an open platform where diverse perspectives converge. Most of our content comes from established publications and journalists, as well as from our extensive network of tens of thousands of creators who contribute to our platform. We empower individuals to share insightful viewpoints through short posts and comments. It’s essential to note our commitment to transparency: our Terms of Use acknowledge that our services may not always be error-free, and our Community Standards emphasize our discretion in enforcing policies. We strive to foster a dynamic environment for free expression and robust discourse through safety guardrails of human and AI moderation. Join us in shaping the news narrative together.
Comments / 0