Walgreens will close about 1,200 locations over the next three years as the drugstore chain seeks to turnaround a struggling U.S. business that contributed to a $3 billion quarterly loss.
Company shares soared Tuesday after Walgreens detailed the plan and also reported better-than-expected quarterly results.
The company said Tuesday that about 500 stores will close in the current fiscal year and should immediately support earnings and free cash flow.
Walgreens didn’t say where the store closings would take place.
Company leaders said the initial wave of closings will take place mostly in the back half of its fiscal year, which started last month. Walgreens will prioritize poor-performing stores where the property is owned by the company, or where leases are expiring.
Walgreens operates about 8,500 stores in the United States and a few thousand overseas. All of the stores that will be closed are in the United States.