Walgreens is shuttering approximately 3% of its U.S. Stores as it looks to cut costs.
The nation’s second-largest chain of drug stores says it will close 200 of its approximately 9,560 American stores. The news comes on the heels of an announced shutdown of 200 stores in the U.K.
The move is expected to save the company $1.5 billion in the coming years. Walgreens has been hit lately by disappointing earnings as it has struggled with lower drug costs and reimbursement issues.
The company did not provide a list of which stores would be closing at this time, nor did it give a timeline for the closings. Parent company Walgreens Boots Alliance said it expected to retain “the majority” of affected employees.
Last year, Walgreens gained control of 1,932 Rite Aid stores, closing hundreds in the process. The company also faced a $35 million fine from the Securities and Exchange Commission over charges it misled investors with overly optimistic earnings projections.
The company is looking to boost revenues in a number of ways. Earlier this year, Walgreens announced plans to begin selling CBD products in over 1,500 stores in Colorado, Illinois, Indiana, Kentucky, New Mexico, Oregon, Tennessee, South Carolina, and Vermont.
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