CVS will close 900 stores in the next three years

The layoffs at one of the largest retail pharmacy chains will begin in the spring of 2022.

CVS Health, one of the largest pharmacy chains in the U.S. with nearly 10,000 locations and 1,200 medical centers, has planned significant layoffs. The company will close 300 pharmacies per year over the next three years, according to Retail Dive. 

According to the company’s press office, the retail chain cuts will begin in the spring of 2022 after “assessing population changes, purchasing patterns and future health care needs to ensure the right stores are in the right locations.”

CVS Health is also preparing for a top management reshuffle. At the same time, work will continue on new store formats. Despite the massive closures, the company will expand as the nation’s health and wellness center.

CVS plans to focus on three formats: first aid outlets expanded health and wellness outlets, and traditional pharmacy outlets. 

“Our retail stores are the foundation of our strategy and who we are as a company. We remain focused on the competitive advantage provided by our presence in thousands of locations across the country, which complements our rapidly expanding digital presence,” commented CVS CEO Karen Lynch. 

Experts noted that the company’s decision to close nearly a tenth of its pharmacies seemed odd. Especially against the backdrop of how ULTRA, Sephora, and many cosmetic brands are expanding, shopping in locations that CVS serves has become more significant during the pandemic. CVS has lost considerable market share in beauty and personal care products in recent years, losing ground to Target, Walmart, ULTRA, Sephora, and other retailers.