Shares in Walgreens Boots Alliance (WBA:NYSE), the retail pharmacy giant behind Walgreens and high street chemist Boots, have fallen 37% year-to-date to $23.43 and are down more than 65% on a five-year view.Walgreens’ shares have struggled this year due to a drop in demand for Covid testing and vaccines, and slowing retail sales as the drugstore chain faces intense competition.

The latest downwards lurch was triggered by the news on 1 September that Rosalind Brewer has stepped down as chief executive. Lead independent director Ginger Graham, who has a background in the healthcare and pharma industries, will act as interim CEO whilst Walgreens searches for Brewer’s permanent successor. It is already looking for a new chief financial officer.

A veteran of the retail sector, Brewer’s departure comes as pharmacy chain Walgreens Boots Alliance continues its strategic pivot towards healthcare.

On 27 June, the $20 billion business delivered third quarter earnings which missed Wall Street expectations and it cut profit guidance for
the year.

Brewer’s departure announcement was accompanied by a further downgrade from the Illinois-headquartered firm, which now expects full year 2023 adjusted earnings per share to be ‘at or near the low end’ of its previously stated range.

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