Walgreens announced that it expects to close 450 locations as part of its cost-cutting measures.
CNN reports that the company expects to close 150 locations in the United States and 300 locations in the United Kingdom.
Walgreens Boots Alliance CFO james kehoe said during an earnings call last week that the chain reported lower earnings compared to the same quarter a year earlier. Walgreens reported net income of $118 million, down 59% from the prior year.
Kehoe said they plan to save $3.3 billion by the end of the year and “at least” $800 million next year. The chain also cut more than 500 positions as part of cost-saving initiatives.
“We are optimizing the model through our micro-fulfillment centers, the technological centralization of in-store activities, and telepharmacy solutions,” he said.
The company’s profits were hurt by lower consumer spending and a drop in demand for COVID vaccines.
“We had called COVID a wild card going into the quarter, and unfortunately we have seen less willingness from patients to get vaccinated,” the chief executive said. Rosalind Gates Brewer saying.
The company operates nearly 9,000 locations in the US and did not specify which stores will close. The locations are expected to close their doors at the end of August 2024.