Walgreens is delivering on its promise to cut off a slice of its retail footprint.
The drugstore giant announced that it will shutter 1,200 stores, according to its third-quarter earnings reported by the Associated Press. The announcement comes months after the company said in June it would embark on closing an unspecified number of stores.
About 500 of the closures will happen in the current fiscal year, which runs until September 2025, but it’s unclear which areas would be affected. The company will reportedly prioritize owned properties with “poor-performing stores” or expiring leases.
The chain counts more than 8,000 Walgreens stores in the United States — but only about 6,000 are profitable, Walgreens Boots Alliance CEO Tim Wentworth said in the earnings call.
The company reported operating losses so far this year were $14 billion — up roughly 105 percent from last year.
The company cited inflation, slowed spending and lower prescription reimbursement among the cause for its losses.
The round of closures, along with tests of smaller store formats, places Walgreens in good company among drugstore giants contending with the future of their footprint.
CVS is nearing the end of its three-year plan to close almost 1,000 stores. The Associated Press reported at the time the closures represented nearly one-tenth of CVS’ 10,000-store retail footprint.
Rite Aid counted more than 2,000 stores in its portfolio before its bankruptcy filing last year, but has since shaved off hundreds.