CVS Well being plans to shut choose pharmacies inside Goal shops early this 12 months, an organization spokesperson stated Thursday, as retail pharmacy chains within the U.S. wrestle to spice up earnings.
The closures will start in February and end by the tip of April, the spokesperson stated in an announcement. She added that staff affected by the closures might be provided comparable roles inside CVS, and prescriptions might be transferred to a close-by CVS pharmacy earlier than a location closes.
The spokesperson didn’t disclose what number of shops can be shuttered, however a report from The Wall Road Journal on Thursday stated CVS would shut “dozens” of areas.
CVS operates 9,000 pharmacy areas nationwide. The corporate has a pharmacy in about 1,800 of Goal’s 1,956 shops within the U.S., in accordance with a Goal spokesperson.
The Goal spokesperson declined to touch upon the closures or share plans for the closed CVS areas.
The choice to shutter the shops is a part of CVS’ effort to cut back its retail footprint “primarily based on our analysis of modifications in inhabitants, client shopping for patterns and future well being wants,” the CVS spokesperson stated.
In 2021, CVS stated it might shut about 900 shops, which is about 10% of its U.S. areas, between 2022 and 2024, as the corporate pushes to rework itself from a significant drugstore chain into a big health-care firm.
CVS has deepened that push over the previous 12 months with its almost $8 billion acquisition of health-care supplier Signify Well being and $10.6 billion deal to purchase Oak Road Well being, which operates major care clinics for seniors.
However the firm additionally launched a cost-cutting program final 12 months as a part of that costly push into well being care, with plans to put off 5,000 staff.
The closures additionally come after pharmacy workers from CVS and different drugstore chains walked out within the fall to protest what they name harsh working circumstances that put each staff and sufferers in danger. CVS has informed CNBC that the corporate is partaking with workers to straight tackle any issues they could have.
— CNBC’s Melissa Repko contributed to this report.
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