CVS Health Plans on Closing 900 Stores

Nov 18, 2021 By MarketDepth

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CVS Pharmacy Store

CVS Health (NYSE: CVS) announced plans to close approximately 900 retail locations throughout the next three years, as a means of steering the business towards the digital era. The company revealed that it would be shutting down 300 stores per year within the established time frame, and is set to begin in spring of 2022.

“The company is committed to offering impacted colleagues roles in other locations or different opportunities as part of its overall workforce strategy.”

CVS said in a statement

Amid a change in consumer needs, the company decided to turn its stores into health-care locations that offer everything from flu shots to diagnostic tests.Furthermore, the pandemic has ultimately pushed people to fill prescriptions online, use curbside pickup and complete doctors appointments via telehealth.

“The company has been evaluating changes in population, consumer buying patterns and future health needs to ensure it has the right kinds of stores in the right locations for consumers and for the business.”

CVS said Thursday

The closures are anticipated to require an impairment charge of USD1 Billion to USD1.2 Billion within the fourth quarter.

“Our retail stores are fundamental to our strategy and who we are as a company. 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.”

CVS CEO Karen Lynch