Walgreens plans store closures, CEO says shoppers stunned by prices
Why is Walgreens planning store closures?
Walgreens is planning store closures due to a challenging environment for pharmacies and US consumers, with weaker consumer spending forecasted for the rest of the year2. The company aims to address underperforming stores and focus on improving its core business: retail pharmacy. Approximately 25% of its stores are not contributing to the chain's long-term strategy, prompting the decision to close a significant portion of these locations over the next three years.
What factors have pressured Walgreens' retail offerings?
Walgreens' retail offerings have been pressured by competition from big-box chains and Amazon, reduced revenues from prescription drugs, and a challenging operating environment with weak consumer spending. The company has also faced issues such as worker walkouts, debt, and pricing pressures from prescription drugs3.
How much did Walgreens' stock price drop recently?
Walgreens' stock price dropped 22% recently due to quarterly earnings that fell short of Wall Street expectations. The company's CEO, Tim Wentworth, cited a challenging environment for pharmacies and U.S. consumers, with weaker consumer spending forecasted for the rest of the year.