US drugstore chain Walgreens is mulling over shutting down nearly 200 stores in the country as part of its expansion plan.
The country’s leading drugstore company has announced a USD 1 billion charge-reduction strategy in August 2014.
The company, which is now known as Walgreens Boots Alliance, has also announced that it will be reorganizing its functions and streamlining its information as well as facts know-how, including other capabilities. The firm is expecting that the moves will incorporate USD 500 million to its estimate for charging the financial savings from the company’s few-year program.
The closing of the stores will amount to nearly two percent of the 8,232 drugstores operated in the US, the US Virgin Islands and Puerto Rico.
According to Walgreen, the move will lead to “a lot quicker and far more agile company”. The company is also expecting to e-book pre-tax costs for the restructuring of among USD 1.6 billion and USD 1.8 billion after the implementation of the system.
The company on Thursday claimed that it has acquired USD 2.04 billion, or USD 1.93 per share, during its fiscal next quarter. Its earnings, which were modified for only one-time costs and gains, were USD 1.18 for every share.
The shares of Walgreens gained 32 cents to USD 88 in premarket investing nearly 90 minutes before the industry open up. The company’s stock had climbed nearly 15 percent so far the current year, as of Wednesday.