Walgreens Boots to close 200 stores

Drugstore giant Walgreens Boots Alliance says it plans to close 200 US Walgreens stores during the next 30 months as it reduces overheads.

But the 8232-strong network in the US and territories will not be shrinking – the company has promised the same number of new locations will be opened during the same time as it plugs obvious gaps in its network footprint.

The Chicago Tribune newspaper reports that the locations of the stores facing closure has yet to be confirmed and the company declined any further comment.

After Boots and Walgreens merged, the new company last August  announced a program to cut US$1 billion in costs. This week it has expanded that target to $1.5 billion by the end of 2017, with plans to streamline its IT functions and reorganise corporate operations.

Alex Gourlay, executive vice president of Walgreens Boots and president of Walgreen, told an analysts conference call that the store closure and opening plan is about “getting the right stores in the right places”.