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Walgreens is the latest chain to face mass closures.
On Thursday, Walgreens announced that the company would close a “significant” number of low-revenue stores across the country.
“The current pharmacy model is not sustainable,” CEO Tim Wentworth told investors on a conference call. “Changes are imminent.”
Related: Walgreens' battle over high-tech refrigerator doors heats up
Wentworth said the company would “take a close look” at 25% of its stores at risk of closure over the next three years, meaning a total of 2,150 stores could be affected by closure.
Walgreens currently operates 8,600 stores.
“Consumers are completely surprised by the absolute prices of things, and the fact that some of them may not go up doesn't change their resistance to current prices,” Wentworth told investors. “So we've had to be really vigilant, especially on the non-essentials.”
Following the release of third-quarter 2024 results, which reported revenue of $36.4 billion, Walgreens Boots Alliance shares plunged over 24% in 24 hours.
The company announced that it had been hit with a $2.7 billion bill from the IRS after the agency conducted audits and reportedly found problems with Walgreens' transfer pricing between 2014 and 2017.
Related: Walgreens unveils new CEO and $1 billion cost-cutting plan
“The company intends to vigorously defend its position on the transfer pricing issue before the IRS Office of Administrative Appeals and, if necessary, in court and is confident of its ability to prevail on the merits,” Walgreens said in its complaint at the time.
As of Thursday afternoon, Walgreens Boots Alliance reported a decline of nearly 59% year over year.
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