Walgreens has announced that they will close twelve of their San Francisco stores in the coming weeks.
The pharmacy chain will begin shuttering stories in the California city at the end of February.
Spokesman Marty Maloney announced that the closing stores would have their last days of operation between February 24 and February 27.
Maloney revealed that the stores closing are Bayview, Downtown/Civic Center, Ingleside, Inner Richmond, Marina, Mission, Nob Hill, Outer Sunset, Parkside, SoMa and two at Western Addition.
The drugstore chain has been struggling with financial problems for several years, which has led to the closure of more than 1,200 stores across the country by 2027.
Walgreens CEO Tim Wentworth unveiled a series of changes last year in hopes of turning around struggling pharmacy chains, sluggish consumer spending and low drug reimbursement rates.
‘Our retail pharmacy business is central to our forward-thinking business strategy. However, increased regulatory and reimbursement pressures are weighing on our ability to cover costs associated with rent, staffing and supply needs,” Maloney shared. SFGate.
Maloney added that “so much [employees] ‘if possible’ will have the option to go to other stores, and customer recipes will be transferred to nearby stores with plans to contact customers for more information.
A dozen stores will close in San Francisco at the end of February, after Walgreens announced more than 1,000 closures nationwide over the next three years.
Maloney revealed that the stores closing are Bayview, Downtown/Civic Center, Ingleside, Inner Richmond, Marina, Mission, Nob Hill, Outer Sunset, Parkside, SoMa and two at Western Addition.
News of the closures means that by 2027, one in seven Walgreens will have closed its doors. San Francisco will have just 29 Walgreens stores left after the new closures
News of the closures means that by 2027, one in seven Walgreens will have closed its doors. San Francisco will have just 29 Walgreens stores left after the new closures.
“While our turnaround will take time, our early progress reinforces our belief in a sustainable retail pharmacy-led business model,” said Tim Wenworth, CEO of Walgreens.
The Illinois-based company announced the closures after Wenworth revealed that about a quarter of Walgreens’ 8,600 U.S. stores were underperforming.
‘It is never an easy decision to close a store. We know our stores are important to the communities we serve and are committed to improving store performance.
“When closures are necessary, such as those in San Francisco, we will work with community stakeholders to minimize customer disruptions,” Wenworth said.
Customers continue to worry about rising prices, putting pharmacy chains at a turbulent time in retail history as high inflation leads to more store closings and bankruptcies.
Other chains that have also closed many or all of their stores include Macy’s, Rite Aid, K-Mart, 7-Eleven and Family Dollar.
As a result, Walgreens stock is trading near a 30-year low, having fallen 65 percent last year.
Other chains that have also closed many or all of their stores include Macy’s, Rite Aid, K-Mart, 7-Eleven and Family Dollar.
The chains’ operating loss in the first quarter was $245 million, compared with $39.5 million in the year-earlier quarter, the release showed. Net loss was $265 million, compared to $67 million in the same quarter last year
Wentworth unveiled plans to improve the performance of pharmacy chains, including the removal of several mid-level managers and a $1 billion cost-cutting program.
“This turnaround will take time, but we are confident it will still deliver significant financial and consumer benefits in the long term,” Wenworth said in a statement.
For fiscal 2025, Walgreens expects adjusted earnings of $1.40 to $1.80 per share, versus estimates of $1.73 per share.
When the first quarter of fiscal year 2025 was announced yesterday, Wenworth said in a news release that the results “reflect our disciplined execution against our 2025 priorities.”
These priorities include stabilizing the retail pharmacy industry by “optimizing our footprint, controlling operating costs, improving cash flow and continuing to address reimbursement models.”
First quarter revenue increased 7.5 percent from the same quarter last year to $39.5 billion, up 6.9 percent at constant exchange rates, reflecting revenue growth across all business segments.
The chains’ operating loss in the first quarter was $245 million, compared with $39.5 million in the year-earlier quarter, the release showed.
Net loss was $265 million, compared to $67 million in the same quarter last year.
“While our turnaround will take time, our early progress reinforces our belief in a sustainable retail pharmacy-led business model,” Wenworth said.