Special Report

11 Retailers Closing the Most Stores

Walgreens
Source: Wikimedia Commons

3. Walgreens
> Closings:
200 (2015-2017)
> Annual net income: $4.2 billion
> 1-year share price % chg.: -3.8%
> Industry: Drug stores

Unlike many companies that are closing stores, Walgreens is doing relatively well. Walgreens Boots Alliance, Walgreens’ holding company, reported a net income of $1.9 billion in fiscal 2014 and more than double that income the year after, at $4.2 billion. Last October, Walgreens announced its intention to buy fellow drugstore Rite Aid for approximately $17.2 billion in cash. As part of a restructuring program announced prior to the proposed acquisition, Walgreens will close approximately 200 of its 8,173 stores. As of the end of fiscal 2015, 84 of these closures had been completed. Walgreens, however, would gain the approximately 4,600 stores that Rite Aid currently operates upon the successful acquisition of the former rival. The likelihood of this occurring depends on the approval of U.S. regulators. To win regulatory approval, Walgreens has stated it would sell as many as 1,000 of its own stores.

2. Children’s Place
> Closings:
200 (2015-2017)
> Annual net income: $57 million
> 1-year share price % chg.: 21.1%
> Industry: Children’s apparel

Children’s specialty retailer Children’s Place announced in March 2015 it would increase the number of locations it planned on closing from 125 to 200 locations through 2017. This total is greater than nearly every other retailer on this list, and is perhaps more indicative of the company’s problem given its small size. As of the end of October 2015, there were only 1,085 Children’s Place stores in North America. In contrast, Walgreens, which is closing the same number of stores, had 8,173 locations as of August 2015. Six years ago, Children’s Place reported a net income of $89 million. Last year, Children’s Place reported a net income of just $57 million.