December 7, 2021
CVS Health to close hundreds of drugstores

CVS Health to close hundreds of drugstores

CVS Health will close hundreds of drugstores over the subsequent three years, because the retail large adjusts to altering buyer wants and converts to new retailer codecs.

The corporate stated Thursday that it’s going to close about 300 shops a 12 months for the subsequent three years, almost a tenth of its roughly 10,000 retail places because it reduces retailer depend density in some locations.

No particulars about the place the closing will happen have been launched by CVS Thursday.

The explosive progress of on-line purchasing has blunted the necessity for purchasers to store on the hundreds of places run by drugstore chains like CVS and Walgreens. That development worsened at first of the COVID-19 pandemic with so many purchasers hunkered down at house.

The corporate additionally has some overlapping shops, however GlobalData Managing Director Neil Saunders sees one other huge issue behind the shift introduced Thursday.

Saunders believes CVS has uncared for its retail enterprise and pushed some of its places “into the downward spiral of irrelevance.”

“Too many stores are stuck in the past with bad lighting, depressing interiors, messy merchandising, and a weak assortment of products,” Saunders stated in an e mail. “They are not destinations or places where people go out of anything other than necessity.”

Drugstores have been redesigning their places as they struggle to turn out to be often known as extra than simply locations to decide up prescriptions and cough syrup. They’ve turn out to be a key supply of COVID-19 vaccines in addition to annual flu photographs.

CVS Health stated Thursday its shops will likely be grouped into three fashions.

Some will likely be conventional pharmacies that provide retail merchandise in addition to some well being care providers. Others will likely be devoted to buyer major care, and the corporate will get away an enhanced model of its “HealthHUB” places.

The corporate began introducing these shops a couple of years in the past. They embody well being care employees like dietitians, group rooms for issues like yoga lessons, and the shops are geared towards serving to prospects monitor power situations like diabetes and keep on high of their well being.

CVS Health stated Thursday that it expects to take an impairment cost of between $1 billion and $1.2 billion within the fourth quarter for the closures. That cost gained’t have an effect on the corporate’s earnings forecast.

Shares of Woonsocket, Rhode Island-based CVS Health Corp. rose 2% to $94.66 Thursday whereas broader buying and selling indexes dipped.


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