Walgreens is the newest chain to face mass closures.
On Thursday, Walgreens introduced that it might be closing a “vital” variety of underperforming shops throughout the nation.
“The present pharmacy mannequin isn’t sustainable,” CEO Tim Wentworth instructed buyers on an earnings name. “Modifications are imminent.”
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Wentworth stated that it might “take a tough look” at 25% of its shops over the subsequent three years with the potential for closure, which signifies that 2,150 shops might be up for shutting down.
Walgreens at present operates 8,600 shops.
“The patron is completely shocked by absolutely the costs of issues, and the truth that a few of them will not be inflating does not really change their resistance to the present pricing,” Wentworth instructed buyers. “So we have needed to get actually eager, significantly in discretionary issues.”
Walgreens Boots Alliance inventory plummeted over 24% in a 24-hour interval upon the discharge of its fiscal Q3 2024 earnings, which reported $36.4 billion in income.
The corporate revealed that it was hit with a $2.7 billion invoice by the IRS after the company carried out audits and reportedly discovered points with Walgreens’ switch pricing between 2014 and 2017.
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“The Firm intends to vigorously defend its place on the switch pricing matter via the IRS’s administrative appeals workplace and, if vital, judicial proceedings and is assured in its potential to prevail on the deserves,” Walgreens stated through the submitting on the time.
As of Thursday afternoon, Walgreens Boots Alliance was down practically 59% yr over yr.
