CVS Will Close 900 Stores as it Looks Beyond Traditional Pharmacies
The company said the closures, which will affect about 9 percent of its stores in the next three years, were part of a shift in focus.,
CVS will close 900 stores as it looks beyond traditional pharmacies.
- Nov. 18, 2021, 12:36 p.m. ET
CVS will close about 300 stores a year in the next three years, the company said on Thursday, as the pharmacy chain focuses on offering more health care services and expanding its digital services.
The closures, which will affect about 9 percent of the company’s stores, are part of an effort to realign its retail strategy, CVS said in statement on its website.
The company operates more than 9,900 stores in the United States, according to its website. A CVS spokesman said the company did not expect CVS pharmacies in Target stores to be affected.
“We remain focused on the competitive advantage provided by our presence in thousands of communities across the country, which complements our rapidly expanding digital presence,” said Karen S. Lynch, the president and chief executive of CVS Health.
CVS is aiming to remake many of its stores. Some will offer primary care services, and others will offer broader health care services than standard pharmacies, such as treatment for diabetes. The company will also maintain traditional CVS stores, which provide prescription services and health products.
“Hybrid models really took off during the pandemic, including rapid delivery services, curbside pickup and buy online/pick up in-store,” said Ted Rossman, a senior analyst at Bankrate.com. “Those approaches could be particularly advantageous for CVS.”
CVS said earlier this month that about 70 percent of CVS Pharmacy customers were enrolled in its text messaging program.
“We continue to modernize our operating systems and enhance the integration of pharmacy models, simplifying consumer interactions and driving further engagement with our customers,” Ms. Lynch said during the company’s earnings conference call on Nov. 3.