Walgreens Boots Alliance Thursday cut its profit forecast for fiscal year 2024 and said it would close more underperforming U.S. stores as weak consumer spending hurts its retail operations.
Shares of the Illinois-based company fell more than 15% in premarket trading, after having declined 40% for the year so far.
Without specifying the number of closures, the pharmacy chain operator said it was finalizing a “significant multi-year” program to close some of its more than 8,700 stores and its review was focused on a quarter of its U.S. locations.
Walgreens could shutter a “meaningful percent” of the stores being reviewed over the next few years, CEO Tim Wentworth said in an interview to The Wall Street Journal.
The company did not immediately respond to a Reuters request for comment about details on store closures.
Investors are banking on Wentworth, who came on board last October, to steer strategy and cost-saving efforts at Walgreens, as the drugstore operator struggles with declining demand at its retail operations due to reduced spending from inflation-weary consumers and weak COVID product sales.
