Headlines

Walgreens: Cost Cuts on Horizon

With merger, some store footprints, locations expected to change

Published

9 years ago

December 29, 2014

Walgreen Co. (Deerfield, Ill.) shareholders are expected to approve the company’s purchase of Alliance Boots (Bern, Switzerland) today, and analysts say that with the merger, the company will be challenged to cut some $1 billion in operating costs. With 8230 stores in North America, Puerto Rico and the U.S. Virgin Islands, Walgreen’s is expected to institute store design changes to reduce expenses and boost under-performing operations, according to Forbes.

In a conference call earlier this month, executives said that having “the best corner or location in any geography” was not always the best strategy. In some markets, the company is expected to seek smaller retail spaces, renegotiate leases or even close some stores. Walgreens' purchase of Alliance Boots is expected to be confirmed on Dec. 31.

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