Walgreens is planning to close a “substantial number” of underperforming locations, as well as reduce its stake in a primary care provider.
In an interview with The Wall Street Journal, CEO Tim Wentworth said the company has not yet settled on how many will close, but it could be a “meaningful percent” of stores that aren’t profitable, over the next few years.
The company will also no longer be the majority owner of VillageMD, a national primary care company.
Wentworth said Walgreens expects to reassign employees so that its plans didn’t result in a meaningful loss of jobs, calling it a “footprint reduction” rather than a workforce reduction.
Walgreens stores close to each other are being reviewed, as well as stores dealing with theft. There are about 80 locations of Walgreens in Alabama.
Walgreens also looks to reduce the number of brands it offers, and focus on women’s health and its loyalty program.
“We recognize where we are is a turnaround,” Wentworth said. “We recognize that we need to be focused on what are the parts of the business that we believe are contributing and have a future, and some of those need to change.”
In March, Forbes reported that Walgreens Boots Alliance lost nearly $6 billion in its second quarter on a loss in value of its investment in VillageMD.
Walgreens Boots Alliance, Inc. is the parent company of Walgreens and other consumer brands around the world — including Boots, Duane Reade, No7 Beauty Company, Benavides and Ahumada.
