Walgreens to shut down two digital properties

Walgreens (NASDAQ:WBA) announced it will shut down two of its digital properties: drugstore.com and beauty.com. The chain acquired drugstore.com in 2011 for $429 million, and beauty.com in the same year.

"Over the past year, we have been focusing on building new omnichannel capabilities on Walgreens.com with initiatives that improved assortment and website user experiences, enhanced our digital coupon capabilities to provide more customer value, and added digital tools into our stores to elevate our shopping experiences," Walgreens said in a statement, reported GeekWire. "Expanding on these efforts is an important part of our strategy."

Both digital stores are set to close by the end of September. Some jobs will be eliminated at the company's Bellveue, Washington location. Remaining employees will stay for the short term as other options are explored.

The shutdown is part of Walgreens' attempt to put its focus on its core e-commerce site. The shutdown is estimated to cost about $115 million.

The move is part of a broader plan for Walgreens to save $1.5 billion in annual costs by the end of its next fiscal year, reported The Wall Street Journal.

In keeping with its recent digital focus, Walgreens announced last month that customers can now redeem paperless coupons for purchases both online and in-store. Offers can be clipped on product detail pages when customers scan search results on Walgreens.com or the mobile app.

For more:
- see this GeekWire article
- see this Wall Street Journal article