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Walgreens to close 200 stores in US

CNBC logo CNBC 8/6/2019 Angelica LaVito
a person standing in front of a store: A pharmacist helps a customer at a Walgreens pharmacy in Wheeling, Illinois.© Provided by CNBC LLC A pharmacist helps a customer at a Walgreens pharmacy in Wheeling, Illinois.

Walgreens plans to close 200 stores in the U.S. as it similarly shrinks its footprint in the U.K., the company said Tuesday.

Parent company Walgreens Boots Alliance earlier this year announced plans to shutter 200 stores in the U.K. and review its U.S. footprint where Walgreens operates roughly 10,000 drugstores.

The new U.S. store closures represent less than 3% of its stores, Walgreens said in a statement, adding that it anticipates "minimal disruption to customers and patients." It said it anticipates retaining "the majority" of employees in other nearby locations.

Walgreens hopes to save $1.5 billion in annual cost savings by fiscal 2022 in what it's calling the "transformational cost management program." Walgreens expects to record a $1.9 billion to $2.4 billion hit related to real estate, severance and other costs, it said in the filing.

"As previously announced, we are undertaking a transformational cost management program to accelerate the ongoing transformation of our business, enable investments in key areas and to become a more efficient enterprise," the company said in a statement.

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