Replies to post #113981 on Savvy Trades and Investments

[researcher59]

WBA is a long term turnaround play if management can shrink the company efficiently .... but the store closures will happen over years, not months, so there could be many more weak quarters ahead along with lots of writedowns that cause the balance sheet to deteriorate - also it's only a percent of their unprofitable stores they plan to close, not all of them. It might amount to just 10% and take several years. I'd prefer they were more aggressive, but long term lease commitments may be a problem.

https://www.wsj.com/health/walgreens-plans-major-u-s-store-closures-0b04a96e?st=twyk8xcdktjl1ls&reflink=desktopwebshare_permalink

Walgreens will close a significant share of its roughly 8,600 stores in the U.S., Wentworth said in an interview with the Journal. The company hasn’t settled on a final number of locations to close, he said, but it is reviewing about a quarter of its stores that aren’t profitable and could shutter a “meaningful percent” of those over the next few years.