Walgreens Down Over 3% - What's Going On?

Zinger Key Points
  • Walgreens lowers prices on 1,300+ products and plans promotional campaigns, including myWalgreens Days, amid profit challenges.
  • VillageMD's $6 billion loss underscores struggles in Walgreens' healthcare model; Walgreens also expands in-store clinics.

Walgreens Boots Alliance, Inc. WBA shares are trading lower on Wednesday.

In a press release, the company confirmed its plans to lower its prices on over 1,300 products.

“We continue to be committed to our customers by lowering prices on over a thousand additional items, something we’ve been doing since October of 2023,” said Tracey D. Brown, EVP, President, Walgreens Retail & Chief Customer Officer.

The company also plans to introduce a series of promotional campaigns, including the return of Walgreens popular myW Days in mid-July.

Among the major price reductions, Walgreens highlighted that Clean & Clear Foaming Facial Cleanser is now $6.99 (it was $7.99), among an array of other products.

“Through myWalgreens loyalty program, our more than 110 million members receive personalized offerings daily. Listening to our customers and offering quality products, value, and convenience every day is our continued commitment,” Brown added.

However, a recent report by CNBC has highlighted concerns over profit generation aspect of Walgreens’ health-care model. Walgreens’ VillageMD reported a $6 billion loss, illustrating the challenges in profiting from a healthcare model once heavily favored by retailers, CNBC reported.

Walgreens revealed the launch of in-store health clinics in Connecticut, named “Hartford HealthCare at Walgreens,” operated by Hartford HealthCare.

These clinics offer access to a broader range of specialists and care options. Additionally, a Be Well Health Clinic in a Phoenix Walgreens near Arizona State University focuses solely on sexual health matters, CNBC added.

Price Action: WBA shares are trading lower by 3.67% to $14.81 at last check Wednesday.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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