CEO Tim Wentworth told analysts Thursday morning that “changes are imminent” for about 25% of the company’s 8,600 stores, which he said were underperforming.
Updated: 15 minutes agoWalgreens is finalizing a plan to fix its business that could result in the closure of hundreds of additional stores in the next three years.
Wentworth said the company’s plan could include the closing of a “significant portion” of those roughly 2,100 underperforming stores if they don’t improve. Walgreens and major competitors like CVS and Rite Aid — which is going through a bankruptcy reorganization — have been closing stores as they adjust to an array of challenges to their businesses. They include include years of tight reimbursement for their prescriptions and rising costs for running their locations.
Primary care clinics like the ones VillageMD operate tend to lose money their first couple years as they build a patient base and improve health. Jefferies analyst Brian Tanquilut has said the new clinics were burning a lot of cash and racking up losses.The CEO also said his company is talking to pharmacy benefit managers to “ensure that we are paid fairly” and working to grow other parts of its business like specialty pharmacy. That helps people with complex or chronic medical conditions.
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