Walgreens, a popular pharmacy chain, plans to close its store at 14529 Manchester Road in Manchester. The closure is scheduled for February 28, affecting the busy Manchester Road area in west St. Louis County.
Walgreens Explains Factors Behind Store Closures
A representative from Walgreens, headquartered in Deerfield, Illinois, explained that closing a store is a tough choice influenced by multiple factors.
These include the number of existing stores, local market conditions, and changes in customer buying habits. The spokesperson emphasized that Walgreens aims to be a leading choice in pharmacy services and broader health care.
By adjusting their store network, they seek to enhance healthcare access, reduce costs, and better serve patients.
Following Rite Aid's bankruptcy and the closure of several local stores, Walgreens has now announced its store closure at 3395 S. Federal Way. This closure, set for Tuesday, February 27th, was indicated by signs on the building.
Customers of this Walgreens can find their prescription records transferred to the nearby store located at the intersection of Apple St. and ParkCenter Blvd., just two miles away.
This marks the second major pharmacy chain reducing its presence in the area, as Rite Aid had previously closed its store in the Eastgate Shopping Center at Boise Ave. and Apple St. last year.
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Walgreens Reports Lower Earnings, Plans Closures
Walgreens has reported a significant drop in earnings compared to the same quarter last year, according to a CNN report in June 2023, with profits falling to $118 million, or 14 cents a share, from $289 million, or 33 cents a share.
The decrease is attributed to reduced consumer spending and a decline in demand for COVID-19 vaccines. CEO Rosalind Brewer announced that the company is intensifying its cost-saving efforts to reach $4.1 billion, focusing on improving profitability in its US healthcare segment.
The company, operating nearly 9,000 U.S. stores, plans to close 150 locations by August 31, 2024, as part of its cost-reduction strategy. This decision follows a move to eliminate more than 500 jobs, approximately 10% of its corporate and U.S. office support staff. According to the company, these measures are necessary to adjust to changing market conditions.
John Kehoe, a senior executive at Walgreens, informed analysts that the company expects to save $3.3 billion by the end of this year and aims to save at least $800 million in 2024. He highlighted the role of technology in driving these savings, mentioning the development of 'pharmacy of the future' initiatives.
These include micro fulfillment centers, tech-enhanced centralization of store activities, and telepharmacy solutions.
As part of its strategy to streamline operations, Walgreens is reducing its physical store presence. Kehoe explained that this move is part of the company's plan to optimize its portfolio and simplify the business. The drugstore chain focuses on developing a 'pharmacy of the future operating model.
According to Kehoe, this model will lead to significant cost savings and involves innovations like micro fulfillment centers, centralized tech-driven store activities, and tele-pharmacy solutions. The aim is to improve efficiency and enhance the role of pharmacists and patient engagement.
However, this shift towards a more tech-centric approach is causing unease among Walgreens' staff, particularly pharmacists. They express concerns over increasing work pressures and challenging conditions.
The pharmacists fear that the high demands on them make it difficult to dispense medications safely. This situation raises concerns about potentially compromising the health and safety of customers.
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