Walgreens to close 1,200 stores as part of turnaround effort

[mystery-ak]

 October 15, 2024 8:42am EDT
Walgreens to close 1,200 stores as part of turnaround effort
Walgreens revenue rose 6% from a year ago

By Daniella Genovese FOXBusiness

Walgreens plans to close at least 1,200 stores over the next three years as the pharmacy giant seeks to reduce costs and turn around operations under a new leader.

One of the largest drugstore chains in the country, Walgreens said it was targeting 900 to 1,000 stores primarily across the U.S. by the end of fiscal year 2027, which is part of the company's "multi-year footprint optimization program." About 500 stores are slated to close as early as fiscal year 2025.

In June, the company had announced its intention to close a "significant" number of underperforming stores across the U.S. as it contended with profitability challenges and declining margins. But CEO Tim Wentworth, who took over in October 2023, didn't give an estimate at the time of how many stores would be affected. He noted that a "meaningful percent" of the underperforming locations would shutter.

Wentworth said in June that there is a "difficult operating environment, including persistent pressures on the U.S. consumer and the impact of recent marketplace dynamics which have eroded pharmacy margins."

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https://www.foxbusiness.com/markets/walgreens-close-1200-stores-part-turnaround-effort

[catfish1957]

Not a good trend.  I don't know about others, but I just don't like or want my meds coming in the mail.   Seems it would be a big damned mess, if someone makes a mistake.

[mountaineer]

... Both Walgreens and rival CVS are facing a difficult operating environment, fighting to be profitable as consumers shift their habits.

In 2021, CVS said it would close about 900 stores, or about 10% of its U.S. locations, from 2022 to 2024. Rite Aid recently emerged from bankruptcy and will operate as a privately owned company. ...

NBC via MSN

This is dizzying. When we moved into this area in the late 90s, we initially got our prescriptions at CVS. Then that store closed and transferred our records to Rite Aid, which was down the street. A few years later, Walgreen's took over the Rite Aid store and its customers, so we've been with Walgreen's for the past several years. This being a small town, I expect "our" store to be one of those closed in the near future. And so forth, etc.

[Wingnut]

A blindman could have seen this coming when the big guys bought up the smaller local chains and then drove the independent druggists out of business. 

Same happened and is happening to traditional Hardware stores.  As a kid we had Coast-to-coast and Western Auto stores in small towns across America.  All gone now.  Now add True Value to the list. TV filed for bankruptcy and is selling out to Do It Best.  I guess Do It is trying to compete with Menards, Lowes and Home Depot.

[Polly Ticks]

Not a good trend.  I don't know about others, but I just don't like or want my meds coming in the mail.   Seems it would be a big damned mess, if someone makes a mistake.

My insurance makes it mandatory if you want the costs to be covered.  You get 2 (or maybe 3?) fills at the local pharmacy, and after that you either go mail order or you pay out of pocket.

[DefiantMassRINO]

My wife tried meds via mail ... what could possibly go wrong?

1.) Doctor's office forgets to submit prescription for refill ... wife gets dope sick, goes to the emergency room
2.) The post office delivers the meds late ... wife gets dope sick, goes to the emergency room

... wife no longer does meds by mail ... too much can go wrong.

[catfish1957]

My insurance makes it mandatory if you want the costs to be covered.  You get 2 (or maybe 3?) fills at the local pharmacy, and after that you either go mail order or you pay out of pocket.

That happened to me too, but I explained I lived in different places, and traveled.  My retirement lifestyle makes it difficult to get meds via mail.

So, I formally petitioned, and won an appeal to be able to use Brick/Mortar pharmaices, as long as it is at least a 90 day supply.

[Smokin Joe]

Not a good trend.  I don't know about others, but I just don't like or want my meds coming in the mail.   Seems it would be a big damned mess, if someone makes a mistake.

Not only is there a really good chance they will get frozen somewhere during winter (6 months of it), but with the trouble I have has with the USPS lately, it's a non-starter.

[mountaineer]

CVS replaces CEO Karen Lynch with exec David Joyner as profits, share price suffer
Fri, Oct 18 2024 4:02 PM EDT
Annika Kim Constantino, Jacob Pramuk
CNBC

Longtime CVS Health executive David Joyner has succeeded Karen Lynch as CEO, as the company struggles to drive higher profits and stock performance, CVS announced Friday.

The move, effective Thursday, the day before the announcement, comes as CVS shares have fallen nearly 20% this year. The stock closed around 5% lower on Friday.

CVS has faced challenges as higher medical costs weigh on its insurance unit, Aetna, and a retail pharmacy business pressured by softer consumer spending and reimbursement headwinds for prescription drugs. In August, the company slashed its full-year profit guidance for the third consecutive quarter and said it would cut $2 billion in costs over the next several years. ...