Walgreens Boots Alliance faced major headwinds into 2024 as the company confronted significant challenges in its efforts to expand into primary care.
Here are five notes on where Walgreens stands in 2025:
1. Walgreens could sell itself to private equity firm Sycamore Partners and become private in 2025, The Wall Street Journal reported Dec. 10.
2. The possible acquisition follows clinic closures across multiple states in 2025. In October, Walgreens announced in its fiscal fourth-quarter earnings report that it plans to close 1,200 locations over the next three years. This will include 500 closures in 2025, which should immediately support adjusted earnings and free cash flow.
3. Walgreens also saw a leadership shakeup to close out the year. Tim Barry, CEO of Walgreens' VillageMD, stepped down from his position as COO Jim Murray was appointed interim CEO on Nov. 27 following Mr. Barry's departure.
4. In the fourth quarter of 2024, Walgreens posted a $978 million operating loss — a 117% increase year over year. Net losses hit $3 billion, compared to $180 million the year prior.
5. In an attempt to expand into primary care, the company acquired a majority stake in VillageMD through a $5.2 billion deal in 2021. Now, the company is rethinking that strategy. The reconsideration mirrors the obstacles other large chains faced in entering the primary care market. According to an Aug. 7 Securities and Exchange Commission filing, Walgreens is evaluating options for VillageMD, including a potential sale of all or part of its stake, as well as possible restructuring options.