Money Control Place
  • Politics
  • Business
  • Stocks
  • Investing
  • Politics
  • Business
  • Stocks
  • Investing

Money Control Place

Business

Walgreens plans store closures as CEO says consumers are ‘stunned’ by prices

by June 28, 2024
June 28, 2024
Walgreens plans store closures as CEO says consumers are ‘stunned’ by prices

Walgreens is planning potentially sweeping store closures as it faces what its CEO called a “challenging” environment for pharmacies and U.S. consumers.

The pharmacy chain announced quarterly earnings Thursday morning that fell short of Wall Street expectations. Walgreens’ stock price dropped 22% on the day.

In an interview with CNBC, CEO Tim Wentworth said the company now forecasts weaker consumer spending for the rest of the year.

″We assumed … in the second half that the consumer would get somewhat stronger,” but “that is not the case,’ Wentworth said. 

‘The consumer is absolutely stunned by the absolute prices of things, and the fact that some of them may not be inflating doesn’t actually change their resistance to the current pricing,’ he added. ‘So we’ve had to get really keen, particularly in discretionary things.’

Last month, Walgreens, following Target’s lead, announced plans to slash prices on 1,300 items to better serve customers it said were increasingly under ‘financial strain.’

Wentworth didn’t state an exact number of closures, but it implied it could be as much as 25% of the chain’s approximately 8,600 stores.

“Seventy-five percent of our stores drive 100% of our profitability today,” he said. “What that means is the others we take a hard look at, we are going to finalize a number that we will close.”

Walgreens has contended with difficulties for years.

Its share price has declined steadily for about a decade, dropping from a peak of more than $95 a share in 2015 to less than $15 today. It has reported reduced revenues from prescription drugs, and its retail offerings remain under pressure from both big-box chains and Amazon.com. And it already announced a plan to close 150 U.S. stores last summer.

Today, Walgreens is about one-third the size of its chief rival, CVS, which has also been under pressure over the past two years.

Since the Covid 19 pandemic, Walgreens has gone through a period of executive leadership turmoil: Wentworth was named CEO in October after his predecessor, Starbucks and Walmart veteran Rosalind Brewer, unexpectedly announced her departure less than three years into the job.

A bright spot was its health care segment, which topped revenue estimates. Walgreens views on-site medical services and specialty pharmacy offerings as critical to its push to transform from a major drugstore chain into a large health care company. 

This post appeared first on NBC NEWS
0
FacebookTwitterGoogle +Pinterest
previous post
YouTube is dominating the living room, forcing media companies to decide whether it’s friend or foe
next post
TSA airport screenings hit an all-time high

Related Posts

Tesla’s law firm drafts Delaware bill that could...

February 19, 2025

Dow closes at record high above 40,000 to...

May 19, 2024

Super Bowl fans are flooding Vegas with cash....

February 14, 2024

Tariffs would be ‘catastrophic’ for sales of tequila...

February 14, 2025

Boeing expects a 2024 cash burn, slow recovery...

May 25, 2024

United to pause pilot hiring, citing Boeing’s delivery...

March 9, 2024

Square outage costs small-business owners thousands in lost...

September 9, 2023

Inflation ticked up to 3.4% in December thanks...

January 12, 2024

UAW members approve 4½-year contract with Detroit’s Big...

November 17, 2023

Chinese tea chain Chagee files for U.S. initial...

March 28, 2025

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Latest

    • Run Your Stock Portfolio Like a Pro Sports Team

    • Leadership Rotation Could Confirm Corrective Phase

    • Breakouts, Momentum & Moving Averages: 10 Must-See Stock Charts Right Now

    • 1911 Gold Temporarily Suspends Operations at True North Complex due to Bissett Evacuation Order

    • Ontario Backs Down on Key Bill 5 Provisions, Echoes BC’s Mining Debate

    • Appeals Court Grants Trump Temporary Reprieve on Tariffs, “TACO” Taunts Gain Steam

    Categories

    • Business (1,223)
    • Investing (2,503)
    • Politics (3,699)
    • Stocks (1,614)
    • Uncategorized (20)
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: MoneyControlPlace.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 moneycontrolplace.com | All Rights Reserved