Medtail has seen problems of late. Walmart, Rite Aid, and Walgreens have all scaled back their efforts, which never took firm root, providing a return. Now Walgreens is showing increased turbulence.
In the company's most recent earnings call, Walgreens Chief Executive Officer Tim Wentworth had some grim news.
"Currently, 75% of our U.S. stores contribute roughly 100% of segment AOI," he said. "For the remaining 25% of the stores in our network which are not currently contributing to our long-term strategy, changes are imminent. To start, we are finalizing a multifactor store footprint optimization program which we expect will include the closure of a significant portion of these underperforming stores over the next three years. Plans to finalize this number are in motion, and we will update you in due course."
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