Walgreens to close 1,200 stores as part of turnaround effort

Published On Oct 15, 2024, 8:42 AM

Walgreens plans to close at least 1,200 stores over the next three years as part of a strategy to cut costs and improve its operations. The closures will primarily affect underperforming locations across the U.S. The decision comes amidst challenges in profitability and declining margins, with CEO Tim Wentworth noting a difficult operating environment for the company. Despite announcing these closures, Walgreens has reported a revenue increase of 6% year-over-year, totaling $37.55 billion. However, the company also showed a net loss of $3 billion for the quarter. The stock saw a slight rise in pre-market trading after the earnings announcement.

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Stock Forecasts

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Negative

The announcement of store closures and the restructuring plan indicates that Walgreens is taking serious steps to address its operational challenges. While the revenue growth is a positive sign, the net loss raises concerns about profitability. Investors could be cautious given the duality of good revenue performance against significant losses and ongoing challenges in the pharmacy segment.

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