As part of plans to revamp its struggling operations, Walgreens intends on implementing a wave of closures across its estimated 8,600 American stores.
While the retail giant hasn't divulged exact figures, it advised on Thursday of "significant" planned shutdowns for underperforming branches across the nation, as part of an ongoing optimisation strategy set to unfold over several years.
When briefing the Wall Street Journal, CEO Tim Wentworth indicated that the impending store closures bear significant weight, making up a "meaningful percent" of the approximately one-fourth of less profitable locations.
The spotlight during this shake-up will be primarily on non-profitable stores, those located too closely together, or stores struggling with ongoing theft problems, Wentworth elucidated.
Following Walgreens' announcement during the quarterly earnings report, combined with a full-year profit forecast cut there was a nearly 9% plummet in pre-market trading shares.
In addressing the tough business conditions, Wentrought concluded; "We continue to face a difficult operating environment, including persistent pressures on the U.S. consumer and the impact of recent marketplace dynamics which have eroded pharmacy margins," and that "Our results and outlook reflect these headwinds."
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