SAN FRANCISCO (AP/CBS SF) — Pharmacy chain Walgreens plans to close 200 stores in the United States as it seeks to cut costs.
A Walgreens spokesperson said the company is not going to release information on the locations affected by the closures.READ MORE: Slow Recovery Prompts Businesses to Rethink Their Future in Downtown San Francisco
The company said in a regulatory filing Tuesday the closings are part of its previously announced plan to trim costs by $1.5 billion in a few years. 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. Nearly 10,000 are in the U.S.
In June it 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.READ MORE: South Bay Restaurants Raise Money for Anti-Hate Efforts Supporting AAPI Community
In the year to date, Walgreens Boots Alliance Inc. shares are down nearly 25% while the broader S&P 500 is up 13%.
There are more than 600 Walgreens in California, more than 60 are located in San Francisco.
Walgreens has already shut down 195 stores so far this year, according to Coresight Research.
Business analysts say retail closures this year could exceed 12,000, more than double the number in 2018.MORE NEWS: San Jose State University President Says Ex-Trainer Improperly Touched Athletes
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