Walgreens Boots Alliance has confirmed plans to shutter about 1,200 stores during the next three years to achieve the operational efficiencies necessary for prolonged growth. This announcement follows the corporation’s routine review of the store footprints in the markets it operates in.
The decision has arrived as management looks to adjust the makeup of its real estate portfolio in response to evolving shopper behaviors. The exploitation of market trends will aid in the improvement of both in-person and online customer experiences. The company is already a reputed multi-channel platform offering digital and physical options for consumers’ health and wellness needs.
The number of stores scheduled for closure represents about 10% of their total store count across the United States. Despite these planned closures, the company’s vast footprint with over 9,000 stores will continue to make it one of the largest retail pharmacy chains in the country.
The stores selected for closure will be guided by the company’s commitment to deliver greater productivity and growth over the long-term. The firm will provide tools, resources, and support to assist the employees who may be impacted by these closure decisions in an attempt to reduce workforce disruption.
This retail streamlining initiative will help Walgreens position itself strategically for the future as the retail landscape continues to evolve. By focusing on core markets and investment in technological infrastructure, Walgreens aims to be at the foreground of health and pharmacy retail.
The overall initiative is expected to result in annual cost savings, which the company plans to reinvest in high growth parts of the business to increase its overall competitiveness and market share. Although the closure of these stores will criminalize short-term costs, the long-term benefits are expected to outweigh these one-time expenses.
The company is confident that this strategy will improve operational efficiency and ensure a sustainable future for the business. Walgreens will continue to communicate transparently with all stakeholders as it initiates these changes.
