Walgreens within the crimson: 14% of US pharmacies closed | EUROtoday

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Walgreens, American pharmacy chain a part of the WBA group (Walgreens Boots Alliance) intends to shut 1,200 of its shops by 2027: of the maxi-cut, 500 will already be within the fiscal 12 months 2025. The firm has round 8,700 shops within the United States and a 3rd are unprofitable, as reported by the AP company.

Billion losses

Walgreens’ announcement was accompanied by the presentation of its quarterly outcomes as of August 31, the place revenues rose by 6% to 37.55 billion {dollars} whereas losses amounted to three billion. Walgreens Boots Alliance executives mentioned in late June that they had been finalizing a restructuring plan for its U.S. operations that will contain closing lots of of shops. The plan introduced at present additionally contains the closure of 300 shops included in a earlier cost-cutting plan. Walgreens CEO Tim Wentworth mentioned fiscal 2025, which started final month, will likely be a serious “rebasing year” for the pharmacy chain. “This breakthrough will take time, but we are confident it will bring significant long-term financial and consumer benefits,” he mentioned.

The pharmacy disaster

Walgreens, like its rivals, has struggled for years with its inflexible prescription drug reimbursement system, amongst different challenges resembling rising prices of working its shops. Additionally, pharmacy chains have confronted elevated competitors from Amazon, Walmart and Target who’ve jumped into the parapharmaceutical market. Rival CVS, a big pharmacy chain within the United States, can also be finalizing a three-year plan to shut 900 shops. Another giant firm, Rite Aid, emerged from a chapter reorganization earlier this 12 months after decreasing its retailer depend to about 1,300 areas.

Walgreens additionally backtracked on a plan so as to add main care clinics subsequent to a few of its shops after embarking on an aggressive enlargement plan beneath earlier CEO Rosalind Brewer.