Walgreens has been focusing more on testing
primary care clinics, which offer more extensive
care, connected to some of its stores in Kansas
City and Houston.
The chain also is working on partnerships with
other companies like the grocer Kroger Co. to
improve its food offerings. Walgreens said that
it also will open 100 locations for the weight-
loss company Jenny Craig at stores nationwide,
starting in January.
Edward Jones analyst John Boylan said the
closing of the clinics is immaterial to the
company financially, and he expects the services
Walgreens offers at its stores to shift over time.
Walgreens Boots Alliance Inc. runs more than
18,750 stores internationally. That includes 9,277
in the United States, Puerto Rico and the U.S.
Virgin Islands.
It has been trimming its total as part of a plan to
cut costs. Walgreens has been hit by challenges
including reimbursement cuts and lower price
increases for branded drugs.
Drugstores also face competition in areas
outside their pharmacies from online options
like Amazon.com.
Walgreens said that it has raised its annual
savings target from its cost cutting program to
$1.8 billion by fiscal 2022, up from a previous
goal to exceed $1.5 billion.
In the final quarter of fiscal 2019, Walgreens
earnings tumbled 55% to $677 million, due in
part to charges from its cost-cutting program.
Adjusted results totaled $1.43 per share.
Revenue climbed 1.5% to $33.95 billion.
The results surpassed Wall Street expectations.