WALGOSWORTH, Australia — Walgreens has plans to close a total of 100 stores, about half of them in Australia, following the closing of its biggest retail store in South Australia last week.
The company announced that it would cut more than 800 jobs in the state of South Australia, as it attempts to meet a $5 billion restructuring plan it said was needed to turn around its struggling Australian operations.
The Walgreen store in Sydney’s CBD, which is known for its high-end beauty brands, closed on Monday and is now set to close its doors in the coming weeks.
The closure is the latest in a series of closures and relocations that have been taking place at the Australian business, which has been losing money for more than a decade.
In recent months, the company has been cutting staff and laying off staff in a bid to reduce its debt and balance its books, but it has been unable to keep up with demand and have a large enough base of suppliers to meet the increasing demand for its beauty products.
Walmart Australia said the closure was due to a combination of factors including the fact the company no longer sells its popular Colgate range of beauty products, which are currently sold through a network of stores across Australia.
“These were the key factors driving the closure of the Colgate store,” the company said in a statement.
In January, the retailer said it would be laying off around 1,000 staff.
The decision to close all its Australian stores comes amid a number of moves to cut costs and cut costs in other ways, including the closing last week of a major department store in Adelaide, and a similar decision in Sydney.