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A Walgreens spokesman has confirmed to NBC News that by August 2024 more than a hundred US locations will be closing.
It’s stated that 300 UK Boots locations are also expected to be shuttering according to the parent company, Walgreens Boots Alliance.
Walgreens Closing Hundreds of Locations in the US
The company states that sales were surprisingly up despite a “challenging operating environment.”
Roz Brewer, Walgreens Boots Alliance chief executive stated that customer spending is also being affected due to inflation.
“Our customer is feeling the strain of higher inflation and interest rates, lower SNAP benefits and tax refunds, and an uncertain economic outlook,” she stated.
Shares for the company dropped heavily this Tuesday after the company stated dwindling COVID-19 test kits and vaccines had hurt the company.
Walgreens’ Financial Damage
Walgreens cut its earning forecast for the year while also raising a cost-cutting goal. In the wake of the company falling short of projected analysis, profit expectations in their fiscal third quarter.
The company now predicts full-year adjusted earrings to go $ to $4.05 a share. Compared to the previously expected range of $4.45 to $4.65 per share.
Analysis forecast adjusted earnings to $4.44 a share by the end of the fiscal year. The Deerfield-based company’s profits fell 59%, leaving them with $118 million in its third fiscal quarter.
Walgreens is not the only large pharmaceutical corporation to fall victim to a negative financial deficit.
CVS Also Affected by Financial Loss
Pharmaceutical company CVS also has plans to close hundreds of locations over the next few years.
They have recently had closings in Florida, Nebraska, Lincoln, and Illinois so far this year.
The company early this January revealed plans to close approximately 300 locations yearly, aiming to close 900 store locations by 2026.
A CVS spokesperson has stated the factor for numerous shutters “…factors include local market dynamics, population shifts, a community’s store density, and ensuring there are other geographic access points to meet the needs of the community.”
As with Walgreens, COVID-19’s effects have also greatly affected them.
Written by AriAnna Rathers
Sources:
NBC Chicago: Walgreens announces plans to close 150 stores in US
The US Sun: Walgreens CFO confirms at least 150 stores set to close as retailer looks to ‘optimize locations’
Image Sources:
Top Image: courtesy of boxer_bob’s Flickr Page – Creative Commons License
First Image: courtesy of Nick Bastian‘s Flickr Page – Creative Commons License