Walgreens Boots (WBA) Unit to Cease Drugstore.com and Beauty.com Operations

Walgreens Boots Alliance (NASDAQ: WBA)

Item 8.01 Other Events.

On July 27, 2016, Walgreens Boots Alliance, Inc. (the “Company”) announced that its Retail Pharmacy USA division plans to cease operations at its drugstore.com and Beauty.com properties. These actions are in furtherance of the Company’s omni-channel strategy and initiatives to greater focus on the development of Walgreens.com. These actions are being implemented as part of the Company’s previously-announced Cost Transformation Program, and are expected to be completed by the end of September 2016. The Company currently estimates that it will recognize pre-tax charges to its GAAP financial results of approximately $115 million relating to these actions, the majority of which are expected to be non-cash charges associated with the writedown of certain intangible assets. The Company expects that substantially all of these charges will be recognized during the fourth quarter of its fiscal year ending August 31, 2016 and the first quarter of its fiscal year ending August 31, 2017.

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