Walgreens Boots Alliance (WBA, Financial), a leading American pharmacy chain, announced plans to close approximately 1,200 stores over the next three years. This decision is part of a strategic effort to revitalize its struggling U.S. operations.
The company recently reported fourth-quarter earnings and adjusted profits that surpassed Wall Street expectations. CEO Tim Wentworth emphasized that in the 2025 fiscal year, Walgreens will concentrate on optimizing store locations, controlling operational costs, improving cash flow, and addressing reimbursement models to enhance prescription dispensing profitability and bolster customer relations.
Walgreens plans to shut down 500 stores in the 2025 fiscal year alone, a move projected to immediately enhance its adjusted earnings per share (EPS) and free cash flow. In June, Walgreens mentioned a significant multi-year store optimization plan to close underperforming locations in the U.S., following third-quarter earnings that fell short of expectations.
Currently, Walgreens operates approximately 8,700 pharmacies across the United States.
