Drugstore chain Walgreens announced that it will close 1,200 stores across the United States.
There are about 8,500 Walgreens stores in the U.S.
About 500 stores will close this fiscal year, while the others will close over the next two years, the company told the Associated Press.
According to CEO Tim Wentworth, about 6,000 stores are profitable. He told analysts that Walgreens’ “solid base supports our conviction in a retail pharmacy-led model that is relevant to our consumers, and we intend to invest in these stores over the next several years.”
The move comes as the chain faced a net loss of $3 billion for the quarter. Walgreens also reported a revenue of more than $35 billion, however, up 6% from a year ago.
In June, Wentworth announced that nearly 25% of the stores would close.
“We are at a point where the current pharmacy model is not sustainable and the challenges in our operating environment require we approach the market differently,” he said at the time.
