Walgreens will close 1,200 stores

Walgreens plans to close at least 1,200 stores over the next three years as the pharmacy giant looks to cut costs and turn around its operations under a new leader.

Walgreens, one of the nation’s largest drugstore chains, said it is targeting 900 to 1,000 stores, primarily in the U.S., by the end of fiscal year 2027, part of its “multi-year footprint optimization program ‘ of the company. About 500 stores are expected to close as early as fiscal year 2025.

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In June, the company had announced its intention to close a “significant” number of underperforming stores in the US as it faced profitability problems and declining margins. But CEO Tim Wentworth, who took over in October 2023, did not provide an estimate at the time of how many stores would be affected. He noted that a “meaningful percentage” of underperforming locations would close.

Wentworth said in June that there is a “difficult operating environment, including continued pressure on the American consumer and the impact of recent market dynamics that have eroded pharmacy margins.”

People make their way to a Walgreens pharmacy in New York City. (Leonardo Munoz/VIEWpress/Getty Images)

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In its latest earnings report Tuesday, Wentworth said fiscal fourth-quarter and full-year results “reflected our disciplined execution of cost management.”

A pharmacist works at a computer station at a Walgreens store in Oak Park, Illinois. (Daniel Acker/Bloomberg via Getty Images/Getty Images)

Walgreens reported revenue of $37.55 billion for its fiscal fourth quarter, up 6% from the same period a year ago and surpassing Wall Street estimates of $35.75 billion.

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The company also reported a net loss of $3 billion, or $3.48 per share, for the quarter.

Shares of Walgreens Boost Alliance rose more than 4% in premarket trading on Tuesday.

Wentworth said that in fiscal year 2025, Walgreens plans to focus “on stabilizing the retail pharmacy business by optimizing our footprint, controlling operating costs, improving cash flow and continuing to address reimbursement models to support dispensing margins and maintain patient access for the future.”