Walgreens plans to close 1200 stores across the US due to a low drug reimbursement rates and slower consumer spending. The closure of the stores are going to happen in the next 3 years, starting with 500 store within the next year.
The company is under a cost cutting program under the company’s CEO, Tim Wentworth. He went on to talk about how they have plans to focus on its core business. The USA Today , the article states, “This turnaround will take time, but we are confident it will yield significant financial and consumer benefits over the long term, Wentworth stated ” (Lagatta, Oct 15).
In addition to the cost cutting program, across its U.S. stores, they’re also reducing prices of 1,300 products. Like other retailers, appealing to inflation weary customers.
Even though we don’t exactly know what 1200 stores are being closed, it would effect 13% of more that 8,700 store that were open last year in August.
However, Walgreens isn’t the only pharmaceutical business struggling.
CVS Health stated, earlier this month that they were cutting 2,900 jobs in efforts to reduce cost by $2 billion. And Rite Aid plans on shutting 154 stores across the U.S to file for bankruptcy.
Pharmacies, both independent and retail chains, around the U.S, are closing down due to low reimbursement rates for pharmaceutical care and low dispensing fees for Medicaid.
