Walgreens to close 1,200 stores nationwide
The strategy will be to phase out these establishments over the next three years. Five hundred stores will close in 2025 alone.
Walgreens pharmacy
Walgreens announced the closure of at least 1,200 of its stores nationwide. The strategy will be to make the closures gradually over the next three year, with 500 branches closing in 2025 alone. The intention is to cut millions of dollars in costs.
Similarly, the company detailed in a report obtained by The New York Post, that of its more than 8,700 branches in the country, a quarter are not profitable. The company had already announced information about the decision but had not specified the number of stores.
"The company has been hit by sluggish consumer spending amid stubbornly high inflation, as well as low drug reimbursement rates, which is the amount of money that healthcare providers or pharmacies are paid for dispensing prescription medications to patients," explained The New York Post.
Walgreens is not the only company to announce store closures. 7-Eleven will close at least 400 stores due to underperformance. The company, which has 13,000 stores in the United States and Canada, reported the decision in its annual report.
According to the information, the retailer has faced six consecutive months of customer decline, including a 7.3% drop in August.
"The North American economy remained robust overall thanks to the consumption of high-income earners, despite a persistently inflationary, elevated interest rate and deteriorating employment environment. In this context, there was a more prudent approach to consumption, particularly among middle- and low-income earners," Seven & I Holdings said in a statement obtained by Fox Business.
The decisions by 7-Eleven and Walgreens coincide with the announcement by Lamb Weston Holdings, the nation's largest producer of French fries that supplies chains such as McDonald's, that it will close its Washington plant and lay off at least 4% of its global workforce.
Lamb Weston Holdings, Inc., President and CEO Tom Werner highlighted that although sales were within the companies' expectations, he does not believe there will be growth in sales in fiscal year 2025.
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