Walgreens Announces Closure of ‘Underperforming’ Stores Across the U.S. – Tennessee Store Included?
Walgreens, leading U.S. pharmacy retailer, recently announced its decision to shutter a number of underperforming stores by the end of 2024. One location in Tennessee has been reportedly shut down, with several others across the nation following suit.
Reason for Store Closures
Walgreens, one of America’s leading pharmacy retail giants, recently revealed plans to close a range of underperforming stores across the nation. The main reason, as stated by Walgreens’ parent company, Walgreens Boot Alliance CEO, Tim Wentworth, is the current precarious retail scenario. The closures come close on the heels of recent decisions to shut down operations of other notable chains such as Hooters and Red Lobster, signaling a troubling period for the retail sector at large.
Tennessee Location and 2024 Impacts
Though Walgreens has not furnished an official closure list, one location in Tennessee, on North Main Street in Memphis, has reportedly sealed its doors this year, as per Usearch.com. However, conflicting reports from Google and Walgreens still portrays it as operational.
Walgreens boasts a strong presence throughout Tennessee, with outlets dispersed across 117 cities. Across the United States, its presence extends to 8,700 stores spanning across all 50 states, Washington D.C., Puerto Rico, and the U.S. Virgin Islands.
Forecast for the Rest of 2024
The company foresees a weak consumer marketplace across the country for the remainder of 2024. The CEO Tim Wentworth alluded to certain market dynamics which have resulted in the erosion of the company’s pharmacy margins. This, in turn, has impacted the ongoing market conditions, posing a significant challenge for consumers of pharmaceutical goods.
Walgreens aim is to redefine the retail pharmacy for an unprecedented customer and patient experience. As such, the company shared a detailed strategic review, focusing primarily on a four-pronged strategy – footprint optimization, U.S. retail pharmacy action plan, realignment of U.S. Pharmacy and Healthcare organizations, and the simplification of the U.S. Healthcare portfolio.
Walgreens’ Strategic Review
- Finalize a significant, multi-year footprint optimization program to close specific underperforming stores in the United States.
- Introduce a ‘U.S. Retail Pharmacy action plan’ aimed at investing and delivering an improved customer and patient experience across various channels.
- Align the U.S. Pharmacy and Healthcare organizations to ensure enhanced go-to-market capabilities.
- Simplify and sharpen the focus on its U.S. Healthcare portfolio.
With these strategic changes, Walgreens hopes to redefine the landscape of the retail sector, combating the various challenges and adapting to a “challenging retail environment”.
All data and information reported here has been sourced through publicly available sources. The impact of these closures will unfold in the coming time.
