Walgreens (NASDAQ:WBA) plans to shutter 200 stores in the U.S. as the company pares back its locations in the U.K., the company said Tuesday.
The chain’s parent company earlier this year announced plans to shutter 200 stores in the U.K. and review its U.S. footprint.
The closures represent less than 3% of its 10,000 locations in the U.S., Walgreens said in a statement, adding that it anticipates "minimal disruption to customers and patients." It said it anticipates retaining “the majority” of employees in other nearby locations.
Walgreens said it hopes to save $1.5 billion in annual expenses by fiscal 2022 in what it’s calling the "transformational cost management program." Walgreens expects to record a $1.9-billion to $2.4-billion earnings hit related to real estate, severance and other costs
A Walgreens spokesman said the company does not plan to release the complete list of store closures and declined to share any more details about which locations will close.
The announcement marks Walgreens’ largest round of closures since 2015, when it also closed 200 stores. Its parent company, which bought 1,932 Rite Aid locations in 2018, has since closed 631 of those stores and plans to shutter another 119.
In May, CVS (see other article) said it would close 46 underperforming stores. In June, CVS’ head of retail warned it will close unprofitable stores as it evaluates its 500 leases that come up for renewal every year.
Shares fell 37 cents to $51.08
