Walgreens announced on Tuesday it will close approximately 1,200 stores over the next three years, including 500 stores in the current fiscal year.
The plan, according to the company press release, would free up cash flow and help support adjusted earnings.
“Fiscal 2025 will be an important rebasing year as we advance our strategy to drive value creation. This turnaround will take time, but we are confident it will yield significant financial and consumer benefits over the long term,” Walgreens Boots Alliance CEO Tim Wentworth said in a statement Tuesday.
The drugstore chain has been struggling, like many of its competitors, amid rising operations costs and lower reimbursements for prescriptions.
In June, the company announced they were finalizing a cost-cutting plan that would have included closing hundreds of stores. The 1,200 total stores set to close in the next three years include the 300 approved in the plan earlier this year.
The drugstore chain announced the company’s net loss of $3 billion, up from $180 million from the fourth quarter last year. Adjusted earnings decreased to $0.39, the company said, and the fourth quarter sales increased to $37.5 billion.
“Our financial results in the fiscal fourth quarter and full year 2024 reflected our disciplined execution on cost management, working capital initiatives and capex reduction,” Wentworth said.
“In fiscal 2025, 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,” he added.