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

Money Control Place

Business

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

by June 28, 2024
June 28, 2024
Walgreens plans store closures as CEO says consumers ‘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 on Thursday morning announced quarterly earnings 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 some 1,300 items in response to better serve customers it said were increasingly under ‘financial strain.’

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

“75% of our stores drive 100% of our profitability today,” Wentworth 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.

The company’s share price has seen steady declines for about a decade, dropping from a peak of more than $95 a share in 2015 to less than $15 today. It’s 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 chief rival, CVS, which has also been under pressure over the past two years.

Since the Covid 19 pandemic, Walgreens has seen 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 from the role 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 ongoing 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
TAG, You’re It! Rotation Away From Semiconductors Benefiting These Stocks
next post
Biden administration to lower costs for 64 drugs through inflation penalties on drugmakers

Related Posts

Tesla stock sinks as Musk and Trump ridicule...

June 9, 2025

Mack Trucks employees go on strike after rejecting...

October 10, 2023

Nvidia’s CEO did a Q&A with analysts. What...

March 23, 2025

Abortion bans and anti-LGBTQ laws are complicating business...

October 22, 2023

United Airlines reaches ‘industry-leading’ labor deal with flight...

May 24, 2025

NYSE says technical issue fixed after Berkshire Hathaway...

June 4, 2024

How Modelo Especial became America’s No. 1 beer...

June 16, 2023

Warner Bros. drops price of Max subscription with...

November 21, 2023

How Calvin Klein and Tommy Hilfiger got caught...

February 7, 2025

US consumer confidence hits 2-year high — but...

July 26, 2023

    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

    • The NASDAQ 100, On The Brink Of A Breakout, Needs Help From This Group

    • Tech 5: OpenAI/Microsoft Talks Get Tense, SoftBank Floats Arizona Robotics Hub

    • Editor’s Picks: Silver Price Hits 13 Year High, Gold Takes a Breather

    • Joe Rabil’s Undercut & Rally Pattern: From DROP to POP

    • RRG Alert Tech Vaults to ‘Leading’—Is XLK Signaling a New Rally?

    • Coelacanth Energy

    Categories

    • Business (1,259)
    • Investing (2,585)
    • Politics (3,699)
    • Stocks (1,670)
    • 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