The retail market seems to grow tighter every day, as mega retailers continue to expand and edge out the competitors. Kroger-partner Walgreens is the next to feel the sting of competition, as it recently pivoted its strategy and announced the closure of 200 stores across the U.S.
According to CNN Business, the planned closures amount to less than three percent of Walgreens’ 9,500 store network. In a statement, Walgreens confirmed that the closures will cause “minimal disruption to customers and patients.”
Crain’s Chicago Business reported that the store closures are part of a cost-reduction plan that will ultimately cost the company $1.9 billion to $2.4 billion, as noted in a securities filing. The chain cited specific challenges like lower prices for generic drugs and a decline in reimbursement rates as reasons for the need to cut costs.
Crain’s Chicago Business also noted that the latest round of closures comes on the heels of an earlier announcement asserting as many as 750 stores will close. CNN Business added that Walgreens is planning on shuttering 200 of its Boots stores located in the United Kingdom, as well.
Walgreens did not list which stores will be closing, but the retailer did state that it will help affected employees find jobs at nearby locations.
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