Check Out Walgreen Co slowing its store opening plan.
The drug store operator said on Monday it will open new stores at a rate of 4 percent to 4.5 percent in 2010 and between 2.5 percent and 3 percent in 2011. That’s down from an already reduced plan for 5 percent growth by 2011, as Walgreen contends with a weak economy and restricted consumer spending.
It will open new stores in strategic markets, in the “best corners” and where there are the best return rates, Walgreen said.
The slower store growth will result in an additional $500 million cut in capital expenditures through 2011, Walgreen said, after it post a lower fiscal first-quarter profit.
Cutting store growth frees up capital that allows Walgreen to improve existing stores, such as by making their product assortments more efficient.
Also in the basket:
D&S stock jumps after Wal-Mart takeover offer
Fewer UK shoppers over weekend - survey
Sysco sees flat to lower Q2 sales
Retailers look to capture night owls - WSJ
India’s textile industry unravels - WSJ
(Photo/Reuters)
Trackback
