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- Walgreens is closing 1,200 stores (newsbreak.com)
Walgreens Announces Store Closures
Walgreens, the US pharmacy giant, has announced plans to close 1,200 stores nationwide over the next three years. The move is part of the company’s effort to streamline its operations and improve its financial performance.
The closures, which will begin next year, follow Walgreens’ previous announcement in June that it would shut down 25% of its US locations. The company has been struggling financially, reporting a $3 billion loss in its latest quarterly results.
Walgreens’ CEO, Tim Wentworth, stated that the closures are necessary to improve the company’s accessibility and convenience while ensuring its profitability. The closures will primarily target underperforming stores and locations where Walgreens owns the real estate.
The store closures are part of a larger cost-cutting plan that includes reducing investments in VillageMD, the company’s primary care clinic subsidiary. Walgreens has also considered selling VillageMD to improve its financial situation.
Analysts have attributed Walgreens’ struggles to various factors, including high prices, poor customer service, and unappealing store environments. The company is facing increased competition from other retailers and online pharmacies.
Walgreens is not the only retailer facing store closures. Analysts predict that thousands of US retail stores could close over the next few years due to factors such as the rise of e-commerce and changes in consumer spending habits.
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- Walgreens is closing 1,200 stores (newsbreak.com)