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Walgreens is planning a significant scale-down in operations over the next few years. The national pharmacy chain said that it will be closing around 1,200 stores across the country over the next three years.
While Walgreens' fourth-quarter earnings beat expectations, the company still reported a net loss of $3 billion, which mostly stems from a writedown of CareCitrix, a Chinese pharmaceutical chain and a home care provider.
"Walgreens spent years building its business through acquisitions and neglected the fundamentals of its stores and its retail operations," Neil Saunders, retail analyst and managing director at GlobalData Retail, told CNN. "That has pushed a lot of outlets into a position where they are losing sales and are not generating a return."
Walgreens joins a growing number of national chains that are struggling to survive in the current economy. The pharmacy chain previously cited difficulties competing with online pharmacies such as Amazon.
Target previously announced plans to close several stores, while CVS was forced to close stores and decrease pharmacy hours due to issues finding qualified pharmacists to work.
Other struggling chains, including Bed, Bath & Beyond, Christmas Tree Shops, Tuesday Morning, Big Lots, and Express, have declared bankruptcy as they try to navigate the ever-changing economic conditions.