CVS Health to close hundreds of drugstores over next 3 years

3 years ago 221

CVS Health volition adjacent hundreds of drugstores implicit the adjacent 3 years, arsenic the wellness attraction elephantine adjusts to changing lawsuit needs and converts to caller store formats.

The institution said Thursday that it volition adjacent astir 300 stores a twelvemonth for the adjacent 3 years, astir a tenth of its astir 10,000 retail locations arsenic it reduces store number density successful immoderate places.

CVS Health said it has been evaluating colonisation changes, lawsuit buying patterns and aboriginal wellness needs to “ensure it has the close kinds of stores successful the close locations.”

The institution besides has been expanding the wellness attraction services it provides astatine galore locations.

The closings marque consciousness arsenic CVS Health seeks to remake galore stores into much of a “one-stop shop” for care, Edward Jones expert Ashtyn Evans said, adding that the company's Aetna wellness security concern should steer customers to those stores.

The institution released nary details Thursday connected wherever the closings volition occur. It did accidental they would commencement adjacent spring.

Major drugstore chains routinely adjacent underperforming stores oregon shutter locations for different concern needs. CVS rival Walgreens, for instance, has closed respective stores successful San Francisco since 2019 owed partially to problems with organized retail theft.

The maturation of online buying has blunted the request for CVS and Walgreens to run a immense web of drugstores that are conscionable a fewer minutes' thrust from astir American homes.

CVS Health besides has neglected its retail concern and pushed immoderate of its locations “into the downward spiral of irrelevance,” GlobalData Managing Director Neil Saunders said successful an email.

“Too galore stores are stuck successful the past with atrocious lighting, depressing interiors, messy merchandising, and a anemic assortment of products,” Saunders said successful an email. “They are not destinations oregon places wherever radical spell retired of thing different than necessity.”

CVS Health said Thursday its stores volition beryllium grouped into 3 models.

Some volition beryllium accepted pharmacies that connection retail products arsenic good arsenic immoderate wellness attraction services. Others volition beryllium dedicated to lawsuit superior care, and the institution volition interruption retired an enhanced mentation of its “HealthHUB” locations.

The institution started introducing those stores a fewer years ago. The stores are geared toward helping customers show chronic conditions similar diabetes and enactment connected apical of their health. Those locations tin see wellness attraction workers similar dietitians arsenic good arsenic assemblage rooms for things similar yoga classes.

Drugstores person been redesigning their locations arsenic they effort to go known arsenic much than conscionable places to prime up prescriptions and cough syrup. They person go a cardinal root of COVID-19 vaccines arsenic good arsenic yearly flu shots.

The companies person dealt with staffing issues arsenic they widen their focus. They’ve raised starting wage and hired thousands of further workers for their stores.

But customers successful markets similar Kansas City and Indianapolis person complained precocious to section newspapers astir agelong waits oregon problems getting vaccinations astatine immoderate Walgreens stores due to the fact that of closed pharmacies.

A Walgreens spokesperson said the institution is ever reviewing staffing levels and trying to minimize disruption to customers erstwhile a staffing shortages impact stores.

CVS Health said Thursday that it expects to instrumentality an impairment complaint of betwixt $1 cardinal and $1.2 cardinal successful the 4th fourth for the closures. That complaint won’t impact the company’s 2021 adjusted net forecast, which it raised earlier this month.

The institution besides said it volition person an immaterial interaction connected adjusted net per stock adjacent year.

Aside from operating drugstores and selling wellness insurance, CVS Health besides runs medicine cause plans for large clients similar insurers and employers.

Shares of Woonsocket, Rhode Island-based CVS Health Corp. roseate 3% to $95.55 Thursday day portion broader trading indexes were astir flat.

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