Walgreens to close 1,200 U.S. stores amid $8.6 billion loss

Walgreens plans to close approximately 1,200 storesacross the United States over the next three years as part of an effort to turn around its struggling U.S. business, which contributed to a $3 billionquarterly loss. The company, which lost $8.64 billion over the last fiscal year, announced the closures as it seeks to improve its earnings and cash flow.

CEO Tim Wentworth revealed that about 500 locations will shut down in the current fiscal year, prioritizing underperforming stores or those with expiring leases. Walgreens operates about 8,500 stores in the U.S., and all planned closures will occur domestically.

Despite the losses, Wentworth emphasized that the majority of the chain’s stores—roughly 6,000—remain profitable, providing a foundation for future growth. The company’s stock, which had plummeted by nearly two-thirds this year, saw a rebound on Tuesday following the announcement of the closures and better-than-expected quarterly results.