Walgreens to cut prices on over 1,300 products as stock keeps sinking

By Tomi Kilgore

Announcement comes about a week after Target announces price cuts on 5,000 items

Walgreens Boots Alliance Inc. said Wednesday it was continuing to lower prices as part of its "Summer of Savings" promotional campaign, this time on more than 1,300 products - but that announcement didn't stop the drugstore chain's stock from falling toward a 27-year low.

"Walgreens understands our customers are under financial strain and struggle to purchase everyday essentials," said Chief Customer Officer Tracey Brown. "We continue to be committed to our customers by lowering prices on over a thousand additional items, something we've been doing since October of 2023."

The announcement by Walgreens (WBA) comes about a week after Target Corp. (TGT) said it was cutting prices on 5,000 items, and about two weeks after Walmart Inc. (WMT) said there was "deflation" in the general-merchandise categories as price rollbacks increased.

Meanwhile, Walgreens' stock sank 2.5%, putting it on track to close at the lowest price seen since December 1997, as the company has been feeling the weight of a "challenging" retail environment in which consumers are shifting their discretionary spending away from the drug channel.

Read more (March 2024): Walgreens to cut costs by $1 billion this year, with layoffs and store updates

Also read (January 2024): Walgreens' stock turns sharply lower after dividend halved to bolster cash flow

Below are some examples of Walgreens' latest price cuts:

The price on One a Day 80-count Men's and Women's Gummy Vitamins was cut by 11% to $11.99.Clean & Clear Foaming Facial Cleanser's price was lowered by 12.5% to $6.99.Salonpas Pain Relief Patch's price is down 8.3% to $10.99.The prices of both Nice! Mini Pretzels and Nice! Sour Cream & Onion Potato Chips are down 29% to $1.99.Eucerin Advance Repair Hand Cream now costs $5.99, down 18%.

Walgreens' stock has tumbled 42.6% for the year to date, while the Consumer Staples Select Sector SPDR ETF XLP has gained 5.7% and the S&P 500 index SPX has advanced 10.6%.

-Tomi Kilgore

This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.

(END) Dow Jones Newswires

05-29-24 1100ET

Copyright (c) 2024 Dow Jones & Company, Inc.