CVS Health to close hundreds of drugstores

CVS Health on Thursday announced plans to shutter 900 locations over the next three years in order to adapt to the changing customer needs. 

Ticker	Security	Last	Change	Change %
CVS	CVS HEALTH CORP.	69.39	+0.79	+1.15%

Starting in spring 2022, the retailer will close 300 of its roughly 10,000 retail locations each year as it reduces store count density in some places. However, CVS stopped short of explaining where these closures will take place. 

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The move is part of the company's plan to create "new store formats to drive higher engagement with consumers," according to CVS. 

The company says it's 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." 

The growth of online shopping has blunted the need for customers to shop at in store. That trend was then further exacerbated by the pandemic, which prompted even more consumers to shop online than ever before – especially during the height of stay-at-home orders. 

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However, CVS Health CEO Karen Lynch noted that its retail stores are still "fundamental" to its strategy.

"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," Lynch said. 

CVS will now focus will be on "three distinct models" including sites dedicated to primary care services, HealthHUB locations "with products and services designed for everyday health and wellness needs" as well as traditional pharmacy stores offering prescription services and retail. 

Staff members at impacted locations will be offered roles at other sites "or different opportunities as part of its overall workforce strategy," CVS said.  

The Associated Press contributed to this report.