CVS Health (NYSE:CVS) has announced plans to close some of its pharmacies located within Target (NYSE:TGT) stores during the first few months of this year. The closures are scheduled to commence in February and conclude by the end of April, with prescription transfers to nearby CVS Pharmacies before the closures take effect.
The move aligns with a broader trend among U.S. pharmacy chains, including competitors like Walgreens Boots Alliance, which are implementing cost-cutting measures to address reduced consumer spending due to inflation concerns and heightened market competition.
According to CVS, the decision to close certain pharmacies is rooted in an assessment of changes in population, shifts in consumer buying patterns, and anticipated future health needs. While specific locations affected by these closures were not disclosed, a company spokesperson stated that impacted employees would be offered comparable roles within CVS.
CVS acquired Target’s pharmacies and clinics in a $1.9 billion deal in 2015, thereby adding around 1,660 pharmacies to its network. The healthcare conglomerate, now operating over 9,000 retail pharmacies in the United States, encompasses one of the largest pharmacy benefit managers and the Aetna health insurer in its portfolio.
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