Walgreens Boots is vastly expanding its cost cutting program in the U.S. just months after its big merger. It also reported a sharp rise in profit and sales. Fred Katayama reports.
Walgreens Boots is vastly expanding its cost-cutting program in the U.S. just months after its big merger. The operator of the Duane Reade and Walgreens drug store chains will shut down 200 domestic stores. That will boost its cost savings by $500 million to $1.5 billion by the end of fiscal 2017. The move comes three months after Walgreen completed its purchase of Europe's Alliance Boots. In its first report after the acquisition, Walgreens' also reported a sharp rise in quarterly revenue. A severe cold and flu season in the U.S. boosted prescription sales at the pharmacy counter. Walgreens' profit nearly tripled and beat expectations, its shares shot higher in early trading. The company says it is still searching for a permanent CEO. Its former chief executive retired following the acquisition.