MISSED THE MARK

Walgreens to Close Nearly a Quarter of Its Stores Across the Country

CEO Tim Wentworth said that a quarter of its stores are not profitable and that it now forecasts weaker consumer spending to continue for the rest of the year.

Walgreens intends to shutter a quarter of its 8,600 stores and sell part of its stake in VillageMD, Walgreens Boots Alliance CEO Tim Wentworth told The Wall Street Journal on Thursday. The company’s stock slipped 25 percent on Thursday morning following a lackluster third quarter earnings result which was impacted by inflation pressures and underperforming investments, according to CNBC. “We recognize that we need to be focused on what are the parts of the business that we believe are contributing and have a future, and some of those need to change,” Wentworth told the Journal. He added that nearly a quarter of the stores are not profitable and that a “meaningful percent” of its 8,600 stores could be closed over the next few years. The company will also cut its majority stake in VillageMD, a primary care clinic, following its nearly $6 billion loss, according to Forbes. Wentworth told CNBC that consumers are “stunned by the absolute prices of things.” The company now forecasts weaker consumer spending to continue for the rest of the year.