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Walgreens to shut most stores on Thanksgiving, stock dips

EditorRachael Rajan
Published 16/11/2023, 17:18
© Reuters.

NEW YORK - Walgreens Boots Alliance (NASDAQ:WBA) Inc. has announced an extensive shutdown of its retail stores and pharmacies for Thanksgiving Day, with the exception of its 24-hour locations and some distribution centers. The move comes amid a challenging period for the company, as its stock fell by 3% during midday trading today. This latest drop is part of a broader three-month slide, which has seen the company's shares decline by 26%, earning it the title of the poorest performer within the Dow Jones Industrial Average. This downward trend contrasts with the overall marginal gain of 0.2% experienced by the Dow over the same quarter.

The decision to close nearly all of its 8,701 outlets on November 23 marks a significant shift for Walgreens, a company known for its expansive network of accessible healthcare and retail services. While this closure will not affect the company's round-the-clock locations or a select number of distribution centers, it represents a substantial reduction in operations on a national holiday traditionally associated with high consumer activity.

The impact of this strategic closure on sales and customer service has yet to be determined, but it follows a period where Walgreens has struggled to maintain its market position. The recent dip in stock value during today's trading session further accentuates the challenges faced by the company in a competitive retail landscape.

Investors and consumers alike are keeping a close watch on how this closure will influence Walgreens' performance as it heads into the crucial holiday season, which often sees a spike in shopping and health-related purchases. The broader implications for retail trends and stock market movements also remain a point of interest, particularly as other companies navigate the balance between operational costs and customer expectations during high-profile holidays.

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