• Investing
  • Stock
Round Table Thoughts
  • Economy
  • Editor’s Pick
Home Editor's Pick Walgreens plans store closures as CEO says consumers are ‘stunned’ by prices
Editor's Pick

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

by June 28, 2024
by June 28, 2024 0 comment
Share
0
FacebookTwitterPinterestWhatsapp

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 announced quarterly earnings Thursday morning 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 1,300 items to better serve customers it said were increasingly under ‘financial strain.’

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

“Seventy-five percent of our stores drive 100% of our profitability today,” he 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.

Its share price has declined steadily for about a decade, dropping from a peak of more than $95 a share in 2015 to less than $15 today. It has 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 its chief rival, CVS, which has also been under pressure over the past two years.

Since the Covid 19 pandemic, Walgreens has gone through 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 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 push to transform from a major drugstore chain into a large health care company. 

This post appeared first on NBC NEWS
You Might Also Like
  • WeightWatchers CEO apologizes to body positivity influencer after Oprah special on weight loss drugs
  • Ontario to remove U.S. alcohol from shelves after Trump’s tariffs announcement
  • TikTok says ban would cost U.S. small businesses and creators $1.3B in first month
  • Elon Musk’s AI startup now valued at $24 billion after fresh funding
Share
0
FacebookTwitterPinterestWhatsapp

previous post
NFL hit with $4.8 billion in damages over ‘Sunday Ticket’ antitrust case
next post
Key fed inflation gauge cools to its slowest rate in over three years

You may also like

Spirit Airlines is canceling flights so it can inspect planes

October 21, 2023

The installed base of fleet management systems in the Americas...

November 29, 2022

Home Depot earnings beat Wall Street estimates as retailer breaks...

February 26, 2025

Tentative deal reached to get UPS drivers air-conditioned trucks ahead...

June 15, 2023

YouTuber Mr Beast sued by Mr Beast Burger food delivery...

August 9, 2023

New sports bundle could give cord-cutting fans their biggest single...

February 8, 2024

Wall Street CEOs say proposed banking rules will hurt small...

December 7, 2023

Disney sues Florida Gov. Ron DeSantis over control of self-governing...

April 27, 2023

Sierra Wireless Announces New 5G LPWA HL7900 Module Integrating Sony’s...

February 21, 2023

Waymo offers teen accounts for driverless rides

July 8, 2025

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Want Faster, Lower Risk Trades? Use This Setup

      July 9, 2025
    • The Seasonality Trend Driving XLK and XLI to New Highs

      July 9, 2025
    • Small Caps Are Rotating In — Here’s Why It Matters

      July 9, 2025
    • Amazon extends Prime Day discounts to 4 days as retailers weigh tariffs and price increases

      July 9, 2025
    • Breakout Watch: One Stock in Each Sector to Watch Now

      July 9, 2025

    Popular Posts

    • 1

      Biden appointee played key role in recruiting Chinese...

      June 25, 2024 3,630 views
    • 2

      Trump-era China sanctions ended by Biden may be...

      June 27, 2024 2,919 views
    • 3

      Walz’s honeymoon with China gets fresh scrutiny as...

      August 9, 2024 2,607 views
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful...

      July 10, 2024 2,576 views
    • 5

      Harris VP pick spent years promoting research facility...

      August 29, 2024 2,449 views

    Categories

    • Economy (7,009)
    • Editor's Pick (2,167)
    • Investing (538)
    • Stock (2,660)

    Popular Posts

    • 1

      Biden appointee played key role in recruiting Chinese businesses to Delaware: ‘Longtime friends’

      June 25, 2024
    • 2

      Trump-era China sanctions ended by Biden may be revived under new House GOP bill

      June 27, 2024
    • 3

      Walz’s honeymoon with China gets fresh scrutiny as Harris camp blasts ‘lying’ critics

      August 9, 2024
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful of Chinese spy threats

      July 10, 2024
    • 5

      Harris VP pick spent years promoting research facility that collaborated with ‘Chinese military company’

      August 29, 2024

    Latest News

    • Want Faster, Lower Risk Trades? Use This Setup

      July 9, 2025
    • The Seasonality Trend Driving XLK and XLI to New Highs

      July 9, 2025
    • Small Caps Are Rotating In — Here’s Why It Matters

      July 9, 2025

    Categories

    • Economy (7,009)
    • Editor's Pick (2,167)
    • Investing (538)
    • Stock (2,660)

    Disclaimer: RoundTableThoughts.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 © 2024 RoundTableThoughts.com. All Rights Reserved.

    Round Table Thoughts
    • Investing
    • Stock
    Round Table Thoughts
    • Economy
    • Editor’s Pick

    Read alsox

    Trump Media plummets 10% as post-lockup...

    September 24, 2024

    Elon Musk’s X sues advertisers over...

    August 6, 2024

    Inside the $1 billion berry startup...

    April 23, 2025
    Sign In

    Keep me signed in until I sign out

    Forgot your password?

    Password Recovery

    A new password will be emailed to you.

    Have received a new password? Login here