Walgreens to Shutter 200 Stores

Walgreens Boots Alliance said it will shutter 200 U.S. stores. The closures are part of an additional cost-reduction initiative that will add $500 million to the $1 billion cost-reduction plan revealed in August. Included in the latest component of the initiative will be a reorganization of corporate and field operations. The total project cost-reduction plan is projected at $1.5 billion, expected to be completed by the end of 2017. The company made the disclosure in its second-quarter earnings report. On a GAAP basis, net earnings for the quarter ended Feb. 28 were $2.04 billion, or $1.93 a diluted share, versus $716 million, or 74 cents, a year ago. Net sales jumped 35.5 percent to $26.57 billion from $19.61 billion. Walgreens Co. and Alliance Boots GmbH combined to form Walgreens Boots Alliance on Dec. 31. The second-quarter earnings report represents the first one disclosed since the two firms merged.

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