Walgreens to close 'significant' number of struggling US stores

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Walgreens plans to close a large share of its U.S. stores over the next three years, Chief Executive Tim Wentworth said on a conference call with industry analysts on Thursday.

Wentworth described a quarter of the company's 8,500 stores as "underperforming," saying the health care giant would close a "significant portion" of those locations. The exact number of closures is still being finalized, Wentworth said.

Walgreens will make changes at the remainder of the struggling stores in an effort to revitalize them, Wentworth said. "We will continue to consider closure if they don't improve," he added.

The announcement arrives nearly seven months after the company embarked on a wide-ranging review of the business in response to flagging consumer spending and adverse changes in the pharmacy industry.

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The recent struggles for the company's U.S. business have stemmed in part from price-conscious customers fatigued by a yearslong bout of elevated prices that have strained household budgets.

"Our customers have become increasingly selective and price-sensitive in their purchases," Wentworth said.

Walgreens has slashed prices on many of its products this year, keeping pace with discounts at other major retail chains like Target and McDonald's. Last month, Walgreens announced discounts for 1,300 of its products, enticing customers with lower prices for many items, including miniature pretzels to coolers to gummy vitamins.

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