CVS to Open Smaller Format, Pharmacy-Only Stores

CVS is focusing on the health side of its business by launching a handful of pharmacy-only, smaller format stores, multiple news outlets reported. The dozen or so stores — expected to open later this year in select, unnamed locations — will come without the snacks, greeting cards and other consumable staples found in traditional CVS locations, CNN reported. They'll be fewer than 5,000 square feet and cater to customers looking to fill and pick up prescriptions.

"By taking a customized approach to our footprint that is focused on the specific needs of the communities we serve, we’re continuing to strategically realign our pharmacy footprint to better support patients and ensure the right geographic coverage," a CVS spokesperson told FOX Business.

CVS is planning to open 30 other locations this year, including some in Targets. The pharmacy chain operates more than 9,000 locations.

Total Retail's Take: CVS posted better-than-expected profits in the fourth quarter of 2024, with its pharmacy and consumer wellness division up 7 percent year-over-year. That's an improvement over sluggish sales and growth as well as layoffs and closures in the few years post-COVID-19. However, CVS recognizes that it must continue to innovate if it wants to keep its position as the top retail pharmacy chain.

In addition to a potentially upgraded customer experience for pharmacy patients, a smaller store format could also serve as a combatant to retail theft, something CVS and other large pharmacy chains and convenience stores have been experiencing for some time. Less product and area to secure could result in less theft.