On Tuesday, the United States Securities and Exchange Commission posted a filing on its website which revealed that pharmaceutical giant, Walgreens, will be closing 200 of its 9200 stores in the United States. While this is less than 3% of all the stores the company owns, the decision was made following a review of the company’s real estate in the United States.
Walgreens To Close 200 Stores In The United States
According to the representative of the company Phil Caruso, this move is part of a transformational cost management program that will allow the company to promote growth by channeling resources to other places. He said that closing 200 stores in the United States will make them more efficient as an enterprise.
While the company stated that it would be closing 200 stores, it didn’t release a list of the stores that will be affected. This may be because they do not want to cause unnecessary panic among workers and customers. Caruso said that the affected stores spread across various cities and isn’t just within a particular place. So, there will be minimal disruption to patients and customers.
Walgreens is just one of the many stores that have announced that they would be downsizing or completely shutting down in 2019. So far, the percentage of stores that would be closed is 29% higher than the stores that were closed in 2018 and the year isn’t over yet.
According to Coresight Research, the number of stores that will be closed by the end of 2019 would be 12,000. So far, 7600 stores have already been closed. Other brands like CVS and Perkins and Marie have closed 46 and 29 locations respectively.
Walgreens is the second-largest pharmaceutical giant in the United States with CVS as the first.