CVS to Close 900 Stores Over the Next 3 Years
CVS Health said Thursday that it will close about 900 stores over the next three years, as it adjusts to shoppers who are buying more online. The company announced in a news release that it will focus more of its efforts on digital growth and turning its stores into destinations that offer a range of healthcare services, from flu shots to diagnostic tests. Store closures will begin in spring 2022. CVS said it plans to close about 300 per year. In total, the closures will add up to roughly 9 percent of the drug store chain's nearly 10,000 U.S. stores.
Total Retail's Take: Consumer behaviors continue to evolve, and that extends to their healthcare. More people are getting their prescriptions filled online and delivered to their homes, as well as consulting with doctors and pharmacists via telehealth. With these factors in play, and after a thorough evaluation of its current physical footprint, CVS has determined that shuttering a portion of its store is in the company's best financial interests.
However, that doesn't mean brick-and-mortar isn't a part of CVS' future. They just may look and operate a little differently. CVS plans to operate three different types of stores: its traditional pharmacies; MinuteClinics, which provide urgent care for common illnesses like strep throat or administer flu shots; and HealthHubs, which sell a wider variety of medical products, offer services from therapy appointments for mental health to screenings for chronic conditions as well as other wellness features like yoga rooms. Integrating those stores with CVS' rapidly growing digital business will be key to the company's future.