A series of Walgreen stores are now set to be closed in Boulder, Denver, and Longmont, Colorado, as well as Albuquerque and Los Lunas in New Mexico.
The Deerfield, Illinois chain, with more than 8,700 stores, has announced that it is closing nearly one hundred of its locations in all regions of the country as part of a new strategy to increase revenue.
In announcing the store closings, Tim Wentworth, Walgreen chief executive officer, remarked: “We continue to face a difficult operating environment, including persistent pressures on the U.S. consumer and the impact of recent marketplace dynamics which have eroded pharmacy margins.”
In an interview with the Wall Street Journal, Wentworth added: “Our results and outlook reflect these headwinds.”
Launched in Chicago in 1901 as a neighborhood grocery store, Walgreens saw rapid growth during the 1930s and 40s because of its drugstore service and famous soda fountain malted milks.
By 1984 Walgreens had opened more than 1,000 stores, a rate of growth that quickly accelerated in the decades to come, with the year 2003 seeing the chain hitting the 4,000-store mark and more than doubling that figure in the following decade.
The rapid growth, according to some industry analysts, may have left Walgreens overextended. In announcing the store closings, a focus on locations that are considered to be underperforming is implied.
Stores that are located too closely together are particularly targeted for closure. Another half dozen Walgreens on the West coast, where theft has become an increasing problem, are also soon to be history.
According to a company statement sent to USA Today, Walgreens said that about “25% of its stores are not contributing to the chain’s long-term strategy.”
By Garry Boulard
