Walgreens Faces Major Shakeup as 1,200 Stores Set to Close Nationwide
Walgreens Boots Alliance, the parent company of the well-known drugstore chain, has announced plans to close 1,200 stores over the next three years, with around 500 of these closures scheduled for fiscal year 2025. While the company did not specify which locations will be affected, it is highly likely that Florida will see closures as part of the nationwide downsizing.
Florida currently hosts 801 Walgreens stores, representing 9% of the company’s total U.S. footprint, according to retail data site Locationscloud.com. This equates to one Walgreens pharmacy for every 26,814 residents across the state. The chain has a presence in at least 48 municipalities along the Gulf Coast, making the potential impact of closures significant.
Tim Wentworth, CEO of Walgreens, emphasized the company’s focus on stabilizing its retail pharmacy business during an earnings call on Tuesday. “We are focusing on stabilizing the retail pharmacy by optimizing our footprint, controlling operating costs, improving cash flow, and continuing to address reimbursement models to support dispensing margins and preserve patient access for the future,” Wentworth explained.
He further stated that fiscal year 2025 will be a pivotal year for the company as it works to rebuild. “This turnaround will take time, but we are confident it will yield significant financial and consumer benefits over the long term,” he added.
This latest round of closures follows Walgreens’ February decision to shut down 50 of its VillageMD clinics in Florida. Last year, the company also closed 150 stores and sold at least seven locations along the Gulf Coast.
The company’s financial challenges were highlighted in its recent earnings report, which revealed a fourth-quarter operating loss of $978 million, a 117.1% increase from the same period last year. For the full fiscal year, Walgreens reported an operating loss of $14.1 billion, up 104.5% from the previous year.
As Walgreens moves forward with its restructuring, Florida residents may soon see changes to their local pharmacy options.
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