Walgreens Boots Alliance Inc. will close around 200 stores in the U.S as part of its transformational cost management program, the retail pharmacy chain said in an SEC filing Aug. 6.

The transformational cost management program, announced in December 2018, targets over $1.5 billion in annual cost savings by fiscal 2022. The program includes global smart spending and smart organization, which initially focuses on the Walgreens' U.S. retail pharmacy division, U.K. retail business and global functions.

In the third-quarter earnings call, Walgreens said the company is reviewing its real estate footprint in the U.S. The Illinois-based company is also closing about 200 stores in the U.K.

The company expects the cost management program to result in cumulative pretax charges to its GAAP financial results of almost $1.9 billion to $2.4 billion. Around $1.6 billion to $2 billion of these charges are projected to be recorded as exit and disposal activities.