CVS Will Trim 900 Stores Over The Next 3 Years
On Thursday, CVS Health (NYSE: CVS) reported it will close 900 stores over the next 3 years. This will trim an estimated 9% of its 10,000 U.S. drug store locations. This is in response to the shift in “consumer buying patterns.” This change is set to take place in Spring 2022, as the company plans to trim 300 stores per year until it meets its goal of 900 stores.
In the company’s news release it said they will direct more of their focus on digital growth and turning its physical stores into a place that offers a variety of health-care related services, such as diagnostic tests and flu shots.
“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,” stated CVS Chief Executive Officer Karen Lynch.
The closure of these stores will cost CVS roughly $1 billion dollars in Q4 2021. Any employees that are affected by this will be offered jobs at other nearby locations.
On top of that the company is also making changes in leadership roles. They have created a Chief Pharmacy Officer, who they appointed to Prem Shah. Both Shah and Michelle Peluso, Chief Customer Officer, will now become Co-Presidents who will take the reins in leading the two parts of CVS’s retail business; pharmacy and retail.
Shares of CVS gained over 1% during Thursday morning’s stock market trading session. The stock is up over 34% year-to-date.
