Walgreens to close 150 stores across the U.S.

Hundreds of Walgreens locations will likely close as the pharmacy retail chain continues to undergo cost-saving initiatives. Walgreens recently announced plans by the company to close 150 of its U.S. locations and 300 locations in the United Kingdom.

Walgreens Boots Alliance executive vice president and global chief financial officer James Kehoe shared the news during the company’s third quarter earnings call Tuesday, saying the company continues ongoing cost-saving initiatives, including more than 500 corporate personnel jobs being cut.

Chief executive officer Roz Brewer said during the earnings call that there are nearly 9,000 Walgreens stores in the U.S., roughly 1,100 of which are now open for reduced operating hours. 

The company cited lagging sales, due in part to lower COVID-19 vaccine and testing sales. Store closings are just some of the company’s cost-saving measures, which come as Walgreens reported net income of $118 million, about 59% below the previous year, and failed to meet earnings expectations, based on analysts polled by S&P Global Market Intelligence.

Walgreens did not share the list of locations that will be closed, but the closings are expected to occur before the end of Walgreens’ 2024 fiscal year in May 2024.

Walgreens also lowered its earning expectations for the full fiscal year. But the company expects to have saved $3.3 billion by the end of 2023 and another $800,000 in 2024, Kehoe said, according to a transcript of the earnings call from S&P Global Market Intelligence.

The company expects to face “emerging challenges” such as lower consumer spending with the end of stimulus funds and resumption of student loan payments, Brewer said.Walgreens stock closed Friday down about 10% since the company’s earnings announcement.