Walgreens to Shutter a ‘Significant’ Number of Stores

Walgreens is the most recent chain to deal with mass closures.

On Thursday, Walgreens declared that it would be closing a “substantial” quantity of underperforming retailers across the nation.

“The latest pharmacy product is not sustainable,” CEO Tim Wentworth informed buyers on an earnings simply call. “Adjustments are imminent.”

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Wentworth mentioned that it would “acquire a difficult search” at 25% of its outlets more than the subsequent three a long time with the likely for closure, which signifies that 2,150 shops could be up for shutting down.

Walgreens at this time operates 8,600 retailers.

“The buyer is definitely stunned by the absolute charges of items, and the simple fact that some of them may possibly not be inflating would not really change their resistance to the existing pricing,” Wentworth told buyers. “So we have had to get actually eager, significantly in discretionary points.”

Walgreens Boots Alliance stock plummeted over 24% in a 24-hour period of time upon the launch of its fiscal Q3 2024 earnings, which described $36.4 billion in revenue.

The company uncovered that it was strike with a $2.7 billion monthly bill by the IRS immediately after the company performed audits and reportedly uncovered troubles with Walgreens’ transfer pricing among 2014 and 2017.

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“The Enterprise intends to vigorously protect its position on the transfer pricing matter by the IRS’s administrative appeals office and, if important, judicial proceedings and is confident in its potential to prevail on the merits,” Walgreens claimed by way of the submitting at the time.

As of Thursday afternoon, Walgreens Boots Alliance was down virtually 59% 12 months about year.

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