Less than three years after taking the head at the pharmacy chain, Walgreens Boots Alliance announced on Friday that CEO Rosalind Brewer has resigned.
The retailer said in a statement that Brewer’s resignation was mutually agreed upon by both the shop’s board and Brewer, who was reportedly one of just two Black women to run a Fortune 500 corporation. Brewer also resigned right away from the company’s board of directors.
As the company conducts a search for a permanent CEO, the board of Walgreens appointed Ginger Graham, a board member, as interim CEO.
Brewer’s exit occurs when the retailer is going through a difficult time.
This year alone, shares of Walgreens have fallen by 32%. In June, Walgreens cut its forecast for full-year profits, citing a slowdown in consumer spending and a decline in the market for Covid vaccinations.
The company, however, is having trouble with sluggish purchases of discretionary items even outside of pharmacy product sales.
Cost-cutting initiatives were put in place by Walgreens under Brewer in an effort to increase profitability in its healthcare division.
The actions included shutting down 450 facilities in the US, paired with 450 in the UK, and axing more than 500 positions, or around 10% of its corporate and US office support employees.
The retailer is experimenting with various models as it closes stores, including one in Chicago where the majority of the merchandise is purposefully hidden from view.
The store, which is located at 2 East Roosevelt Road, once included many aisles filled with everyday necessities, cosmetics, packaged snacks, health care necessities, and an in-store pharmacy.
The identical venue reopened earlier this month with a noticeably more understated appearance.
According to Walgreens, the store is an experimental digital one that is intended to serve customers rather than prevent theft.
However, according to retail experts, the best method to stop the rising number of stealing instances is to keep all items out of sight.
Retailers have recently raised the alarm about theft becoming a big problem that could hurt their businesses’ profitability this year, including Dick’s Sporting Goods and Dollar General.