CVS closes 900 stores

The drugstore chain said on Thursday that the closures would result in a retail presence that would ensure it has “the right types of stores in the right places for consumers and for the business.” A list of site closures, which will take place from next spring, was not immediately released.
The closures are part of a larger realignment of its retail strategy of its approximately 10,000 locations. This includes the remodeling of some stores to include more health services, such as primary care, and an “improved version” of its HealthHub layout.
“We remain focused on the competitive advantage provided by our presence in thousands of communities across the country, which complements our growing digital presence,” said Karen Lynch, CEO of CVS. She joined the company a year ago.

The closures will cost the company around $ 1 billion in the fourth quarter of 2021. Affected employees will be offered jobs in nearby locations.

Neil Saunders, retail industry analyst and managing director of GlobalData, said in a note to investors that the closures are a result of CVS having “too many overlapping locations” and the state of dilapidation of its stores which “pushed some of them down.” spiral of irrelevance. “

“Too many stores are stuck in the past with poor lighting, depressing interiors, messy merchandising and a poor assortment of products. These aren’t destinations or places people go out for anything other than necessity,” he said. Saunders said.

CVS (CVS) stocks jumped 1% early in the session. The title is up nearly 40% over the year.

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