Baltimore, MD - Oct. 15, 2024 - Walgreens announced on Tuesday plans to close 1,200 "underperforming" locations by 2027, including about 500 in 2025.
The closing locations will consist of buildings owned by Walgreens and where leases are set to expire in 2025. The company said there is a cost to closing some of its locations, but sees opportunities in subleasing underperforming stores.
Walgreens Global Chief Financial Officer Manmohan Mahajan told investors that 2025 closures would be weighted toward the back half of the fiscal year.
"We are prioritizing closing locations that are cash flow negative, underperforming stores where we own the locations and ones where the lease expirations are coming due in the next few years," he said. "The economic benefits of this approach should begin to be tangible in fiscal 2025 by accelerating the scope of our footprint optimization program and focusing on stores with weakest cash generation."... Read More: WMAR2NEWS