Nearly one thousand CVS stores are set to close over the next three years as the retail giant continues to pivot away from retail and leans into the company's healthcare services.
On Thursday, Nov. 18, the company announced that it planned to shut down at least 300 stores annually for the next three years as it re-evaluates its business strategy.
The closures will begin in spring 2022.
CVS made the announcement as it continues to contend with digital competition and online shopping, which was exacerbated during the COVID-19 pandemic, forcing the company to pivot its plans for the future.
“The company is committed to offering impacted colleagues roles in other locations or different opportunities as part of its overall workforce strategy," CVS said in a statement.
“The company has 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.”
Not all stores will become defunct, with some existing locations being transformed into “health hubs” with offerings such as diagnostic testing, mental-health services, and hearing exams.
A spokesperson for CVS said that the company hasn't decided which locations will be shuttering their doors, though it will make that determination based on multiple factors, including “local market dynamics, population shifts, and store density" as well as "ensuring Aetna and Caremark coverage, and the needs of underserved communities.”
“Our retail stores are fundamental to our strategy and who we are as a company," CVS CEO Karen Lynch said in a statement.
"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."
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