During its third quarter earnings call in October, Walgreens Boots Alliance said its major financial goal was to slash $1 billion in 2024, including $600 million in capital expenditures, following a string of poor quarterly performances.
VillageMD, a primary care company which Walgreens acquired in 2020, has approximately 680 clinics within Walgreens in 26 cities. The Deerfield, Ill.-based company said it plans to close around 60 of those in five markets by summer 2024.
“Our long-term focus will be on achieving density in those regions with the greatest potential to drive future profitability growth and where we can best serve patients with our consolidated set of assets,” John Driscoll, Walgreens Boots Alliance executive vice president and president of U.S. Healthcare, said during the October earnings call.
Building a health care network, including brick and mortar clinics, was part of the vision of former Walgreens Boots Alliance CEO Roz Brewer, who was replaced by Tim Wentworth earlier this year after spending less than three years as Walgreens’ head boss.
Part of Brewer’s vision was to build at least 600 clinics by 2025 and an additional 400 by 2027, but the cost of such an endeavor was weighing down heavily on the retailer’s bottom line. The 10 clinics in Jacksonville cost approximately $6.25 million, or around $625,000 each.