Walgreens has announced plans to close approximately 1,200 locations over the next three years in an effort to revitalize its struggling U.S. business. The company disclosed that around 500 store closures will take place in the current fiscal year, with expectations that this move will have an immediate positive impact on adjusted earnings and free cash flow.
Leaders at Walgreens Boots Alliance Inc. revealed in late June that they were in the final stages of developing a turnaround strategy for its U.S. operations, which could involve shutting down hundreds of underperforming stores. Like many of its competitors, Walgreens has been grappling with challenges such as tight reimbursement rates for prescriptions and escalating operational costs.
