Walgreens announced on Tuesday that it plans to close 1,200 stores by 2027, amid slowing sales and changing consumer behavior. Per the announcement, Walgreens estimates a quarter of its 8,700 stores in the U.S. are unprofitable.
Walgreens reported growth within its business segments, but said it will shut down more than 1,000 stores over the next few years. The pharmacy chain said 500 of the closings would occur over the next 12 months, with the news comeing after their announcement in June that it would close “underperforming” U.S. stores.
Walgreens said that the closures as part of its fiscal fourth-quarter and full-year earnings; in a statement, CEO Tim Wentworth acknowledged the company was “in the midst of a turnaround that will take time, but we are confident it will yield significant financial and consumer benefits over the long term.”
According to a company release, Walgreens shares jumped 12% as of just before noon and new information released by Walgreens on Tuesday reflected “sales growth across all segments.” Wentworth said during an earnings call that the closures will give the company a “healthier store base, and will enable us to respond to shifts in consumer behavior and buying preferences,” and added that the company hopes to keep on a majority of its workforce impacted by the pending store closures.
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