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Walgreens Isn’t Done Closing D–gstores In U.S. Or Abroad by Bruce Japsen
Walgreens Boots Alliance is closing 200 Boots d–gstores in the United Kingdom as part of a global “transformation cost management program” launched earlier this year that has figured in store closures in the U.S.
The plan disclosed late last week and confirmed by Walgreens Boots Alliance to shutter 200 U.K. stores and consolidate them with other Boots locations comes after a decision announced earlier this year to shutter more Rite Aid d–gstores in the U.S. than originally anticipated. Walgreens initially purchased 1,932 Rite Aid stores and planned to close up to 600, but that number is growing to 750, executives said in April.
To counter reimbursement pressures and competition for brick and mortar retailers from online giants like Amazon, Walgreens is spending hundreds of millions of dollars on “updating” its systems and infrastructure. In the U.S., Walgreens capital spending includes integration costs through the end of fiscal 2020 of converting Rite Aid stores it purchased in the last two years into Walgreens.
Walgreens executives have said the “transformation cost management program” is a key to the company’s future.
“Most importantly, this program will help drive a structural change in the company, making us a more efficient, more agile and more responsive organization,” Walgreens Boots Alliance chief executive officer Stefano Pessina told analysts on the company’s fiscal third quarter earnings call last week.
“It is expected to provide a significant portion of the funding required for our major technology upgrade and development investments,” Pessina said. “And, of course, an element of it will help to give us a bridge in our financial performance, as we restructure our businesses to better meet the needs of an ever more rapidly changing market.”
SOURCE: https://www.forbes.com/sites/brucejapsen/2019/07/01/walgreens-isnt-done-closing-d–gstores-in-us-or-abroad/