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Walgreens To Shut 200 Stores Nationwide To Trim Costs

NEW YORK (CBSNewYork/AP) - Walgreens has announced its closing 200 stores across the United States, part of a previously announced plan to trim costs by a $1.5 billion.

In May, the company announced plans to close 200 stores in the United Kingdom.

The Deerfield, Illinois-based company operates over 18,000 stores worldwide, including the Duane Reade pharmacies around New York City. Walgreens acquired the familiar New York pharmacy chain in 2010.

Walgreens also acquired almost 2,000 Rite Aid stores in a $17.2 billion deal last year.

In June Walgreens reported a 24% decline in quarterly net income and predicted that annual earnings would be roughly flat with the prior year. Walgreens has been hit by challenges including reimbursement cuts and lower price increases for branded drugs.

In the year to date, Walgreens Boots Alliance Inc. shares are down nearly 25% while the broader S&P 500 is up 13%.

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