CVS to Close 270 Stores in 2025
Hundreds of CVS pharmacies are set to close in 2025, the national drug store chain confirmed last week, as part of an ongoing effort to "realign" the company's retail footprint. According to a statement, CVS plans to close 270 stores nationwide in 2025. The closures were first announced in October 2024, the company said. In November 2021, CVS announced plans to reduce store density in certain locations and "optimize" existing stores and pharmacies. As part of the announcement, CVS Health said it planned to close approximately 300 stores over the next three years.
Total Retail's Take: CVS is not immune to the challenges facing the retail pharmacy sector. In the last 12 months, Walgreens has announced that it will be closing 1,200 stores by 2027 (and was acquired by private equity firm Sycamore Partners); Rite Aid filed for bankruptcy, its second such action in two years; and CVS, the category leader, has now announced store closures of its own. What's driving these struggles? There are three primary reasons:
- Reimbursement pressure from pharmacy benefit managers (PBMs), which control drug pricing and reimbursements, often squeezing retail pharmacies.
- A shift to online and mail-order pharmacies, including the growing popularity of Amazon Pharmacy and other digital players.
- Economic pressures, including inflation, has reduced discretionary consumer spending.
