CVS Health prepares to close choose drug stores inside Target shops early this year, a business representative stated Thursday, as retail drug store chains in the U.S. battle to increase revenues.
The closures will start in February and surface by the end of April, the representative stated in a declaration. She included that workers impacted by the closures will be provided equivalent functions within CVS, and prescriptions will be moved to a neighboring CVS drug store before an area closes.
The representative did not divulge the number of shops would be shuttered, however a report from The Wall Street Journal on Thursday stated CVS would close “dozens” of areas.
CVS runs 9,000 drug store areas across the country. The business has a drug store in about 1,800 of Target’s 1,956 shops in the U.S., according to a Target representative.
The Target representative decreased to discuss the closures or share prepare for the closed CVS areas.
The choice to shutter the shops belongs to CVS’ effort to decrease its retail footprint “based on our evaluation of changes in population, consumer buying patterns and future health needs,” the CVS representative stated.
In 2021, CVS stated it would close about 900 shops, which has to do with 10% of its U.S. areas, in between 2022 and 2024, as the business presses to change itself from a significant pharmacy chain into a big health-care business.
CVS has actually deepened that push over the previous year with its almost $8 billion acquisition of health-care company Signify Health and $106 billion offer to purchase Oak Street Health, which runs medical care centers for elders.
But the business likewise introduced a cost-cutting program in 2015 as part of that pricey push into healthcare, with strategies to lay off 5,000 workers.
The closures likewise followed drug store personnel from CVS and other pharmacy chains left in the fall to oppose what they call severe working conditions that put both workers and clients at danger. CVS has actually informed CNBC that the business is engaging with personnel to straight deal with any issues they may have.
— CNBC’s Melissa Repko added to this report.
Don’t miss out on these stories from CNBC PRO:
