Walgreens shutters 200 U.S. merchants

Walgreens announced plans Thursday to near 200 U.S. merchants, just months soon after it concluded its purchase of European drugstore chain Alliance Boots.

The company, now acknowledged as Walgreens Boots Alliance ( WBA ) , mentioned the retailer closings will permit a a lot more aggressive value-reducing prepare, as it aims to minimize expenditures by $ 1.five billion more than 3 a long time. It had previously established a $ 1 billion value cutting focus on.

Walgreens is the greatest U.S. drugstore chain by spots, with somewhat a lot more shops than rival CVS, despite the fact that it trails CVS in product sales.

The chain has been adding retailers a lot more frequently than it has closed them in current years. It has eight,232 U.S. retailers spread throughout all fifty states. In addition to the abroad move to buy Alliance Boots for $ 5.three billion, it also expended $ one.1 billion to get the Duane Reade chain of pharmacies, which it nonetheless operates beneath that separate name, a offer that introduced in 257 shops in New York Metropolis.

But closings have grow to be a expanding development in the retail sector as brick-and-mortar retailers experience growing competitiveness from online outlets. Even classic chains are attempting to answer to much more product sales shifting on the web.

Over and above the retailer closings declared as component of the bankruptcies of RadioShack and Soaked Seal, other chains that have declared current closing ideas incorporate Staples, Workplace Depot and Sears.

Walgreens explained strategies for closings are still being finalized and no time body has been set for when the closings will take place.

CNNMoney (New York) April 9, 2015: 2:fifty two PM ET

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