walmart 500
The mega drugstore chain will shut 1,200 stores in an out of court restructuring.
Financial difficulties in drugstore retail sector have led to mega chain filing bankruptcy and closing hundreds of stores, other pharmacy retailers are closing stores but not filing Chapter 11 petitions.
The retailer identified 154 stores it planned to close but amount grew to over 800 stores by August.
The company filed for bankruptcy facing competition from CVS, Walgreens Boots Alliance, Costco, Walmart Mark Cuban CostPlus Drug Company for prescription business.
The mega retailer bankruptcy in past year was Rite Aid Chapter 11 filing on Oct. 15,2023 reject store leases and shut underperforming stores.
The retailer identified 154 stores it planned to close but amount grew to over 800 stores by August.
The company faced a civil lawsuit filed against it by Department of Justice in March 2023 alleging that it pharmacists incorrectly filled prescription contributing to opioid epidemic after they repeatedly filled prescription for controlled substances with obvious red flags.
Mega drugstore chain CVS in 2021 added it would shut 900 of its 9,900 stores to reduce costs and cut deficit closing 300 location each year in 2022, 2023 and 2024.
The company add it consider various factors before shutting down a store like maintaining access to pharmacy services, local market dynamics community store density population shifts geographic reach points to meet needs of community.
Walgreens closing 1,200 stores
Financial year 2024 sales climb 6.2$ to $147.7 billion with net loss of $8.6 billion a 180.4% increase from past year.
Giant drugstore chain walgreens will shut 1,200 underperforming stores in next three years with 500 closings planned in financial year 2025 as part of its out of court restructuring plan.
Walgreens in third quarter start evaluation 2000 stores for closure but identified 1,200 locations to shutter.
The company stressed on improving performance operating and cash flows from remaining 800 stores and will continue to evaluate those and other location for retail footprint CEO Tim Wentworth said.
The drugstore chain will re evaluate its merchandising offer a refreshed assortment of products including owned brands.
Parent Company Walgreens Boot Alliance operates 8000 stores with 6000 profitable locations it will close location with negative cash flow, underperforming store where it owns locations and ones with lease expirations coming due in next few years to redu
WBA operates 8000 store with 6000 profitable location said it will close locations with negative cash flows underperforming store where it owns locations and one with lease expiration coming due in next few year to reduce impact of dark rent.
