Pharmacy chain Walgreens Boots Alliance, under CEO Tim Wentworth, is planning to close a significant number of underperforming stores.

The company aims to shut down 25% of its stores over the next three years, totaling 2,150 out of the 8,600 currently operated.

This decision responds to economic challenges in the U.S. retail pharmacy business and follows a 24% drop in stock value due to a $2.7 billion tax bill from the IRS.

Despite lower-than-expected earnings for the third quarter of 2024, Walgreens reported positive growth in its U.S. healthcare segment and strong international performance.

The company is focusing on sales growth, cost-saving initiatives, and working capital management as part of its strategic reviews to drive a turnaround.

Adjusted EPS guidance for fiscal year 2024 has been lowered, but Walgreens remains committed to delivering long-term shareholder value and a more efficient approach for customers.