Walgreens announced Thursday its plan to close 200 U.S. stores to consolidate and bring costs down.
USA Today reported that the country’s largest retail drug chain will close the stores as part of the company’s major cost-reduction initiative. Walgreens would like to cut costs by more than $1 billion over the next few years.
"After a rigorous analysis, the company has identified additional opportunities for cost savings, primarily in its Retail Pharmacy USA division," Walgreens said. "Significant areas of focus include plans to close approximately 200 USA stores; reorganize corporate and field operations; drive operating efficiencies; and streamline information technology and other functions."
Bloomberg noted that newly-appointed Chief Executive Officer Stefano Pessina detailed his strategy and future plans with analysts that could include a buyout of a drug-distribution supplier like Express Scripts.
Unlike CVS and Rite Aid stores, Walgreens does not have its own a pharmacy benefit manager.
Last year, Walgreens shuttered 76 stores. The closures are a sign of the times as bigger competitors like Walmart have now firmly planted themselves in the prescription business.