Walgreens Boots Alliance Inc. will close 200 U.S. stores as part of a companywide cost-savings and restructuring strategy. The company made the announcement in its second-quarter financial results Thursday, the first financial results reported since Walgreen Co.’s December acquisition of European company Alliance Boots GmbH.
Walgreens announced in August a three-year, $1 billion cost-reduction initiative. Executive Vice Chairman and acting CEO Stefano Pessina attributed the companywide measures to prescription reimbursement pressure and competition.
Pessina said plans include creating a more efficient cost model, improving operations and reinvesting in stores to improve customer experience and expand retail margins.
“Through these efforts, Walgreens Boots Alliance is determined to lead the way in our industry and be at the forefront of innovative, pharmacy-led health care,” Pessina said in a statement.
The company said it expects closing retail stores will increase the total expected cost savings by $500 million to a projected $1.5 billion by the end of fiscal 2017. Pessina said the quarter marked a solid start for the combined company, whose overall sales in the first half of the fiscal year exceeded those in the same period a year ago.
Westchester and Fairfield counties each have about 20 Walgreens pharmacies.
The company’s board is also continuing to search for a permanent CEO.
