Walgreen’s to Slow Down

Walgreen Co. (Deerfield, Ill.), the nation’s largest drugstore chain, has announced it will slow its store expansion over the next three years in a move to conserve $500 million.

The company plans to grow store expansion by 6 percent in 2010 and 5 percent in 2011, down from a long-term growth target of 8 percent. That translates into 425 stores in 2010 and 365 in 2011. In the 2008 fiscal year ending August 31, the company grew its store count by 9 percent. New store openings already in the works will result in 8 percent growth in fiscal 2009, or 495 stores.

The targets exclude any potential acquisitions.

“This move allows us to improve both return on invested capital and overall shareholder value,” said chairman and ceo Jeffrey Rein. “At the same time, it gives us the flexibility to invest in our core strategies.”

The retailer said it is still on track to reach its goal of operating more than 7000 stores by 2010. The company currently operates 6297 drugstores in 49 states, the District of Columbia and Puerto Rico.