Walgreens announces plans to close 1,200 storefronts by 2027

The first wave of closures is planned for 2025, when the drug store giant will shut down 500 brick-and-mortar locations, according to Walgreens Boots Alliance CEO Tim Wentworth. The company aimed to stabilize its retail pharmacies in the new fiscal year by reining in operating costs and improving cash flow, Wentworth explained.

Was the announcement prompted by poor sales? The company released its financials for the fourth quarter and the 2024 fiscal year on Tuesday. Walgreens’ sales increased by 6 percent year-over-year and reached $37.5 billion in the latest quarter, according to the report. The fiscal year also brought about a 6 percent bump in sales which clocked in at $147.7 billion. The company also exceeded the 2024 target of $1 billion in cost savings and ended with a net debt reduction of nearly $2 billion, according to the report.

Dig deeper: Read Tobin Jacobson’s report on competing pharmacy chain Rite Aid filing for bankruptcy last October.