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Walgreens is the latest chain facing mass store closures.
Walgreens announced Thursday that it will close a “significant number” of underperforming stores across the country.
“The current pharmacy model is not sustainable,” Chief Executive Officer Tim Wentworth told investors on an earnings conference call. “Change is imminent.”
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Wentworth said it would “thoroughly review” 25% of its stores for potential closure over the next three years, meaning 2,150 stores could be targeted for closure.
Walgreens currently operates 8,600 stores.
“Consumers are completely surprised by the absolute price of products. The fact that some products have not increased doesn’t really change consumer resistance to current pricing,” Wentworth told investors. “So we’ve had to be very aggressive, especially around discretionary products.”
Shares of Walgreens Boots Alliance Inc. plummeted more than 24% in 24 hours after the company reported third-quarter 2024 revenue of $36.4 billion.
The company: $2.7 billion bill The IRS conducted an audit and found issues with Walgreens’ transfer pricing between 2014 and 2017.
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“We intend to vigorously defend our positions with respect to the transfer pricing issues before the IRS Office of Administrative Appeals and, if necessary, through the judicial process, and we are confident that we will achieve a substantive victory,” Walgreens said in a filing at the time.
As of Thursday afternoon, Walgreens Boots Alliance It was down Approximately 59% compared to the previous year.