CVS to close ‘select’ pharmacies in Target stores in the coming months

Key Points

• Pharmacy Closures Inside Target Stores: CVS Health has announced plans to close select pharmacies located within Target stores in the United States. The closures are scheduled to commence in February and conclude by the end of April, according to a company spokesperson. While the spokesperson did not disclose the exact number of stores to be shuttered, reports from The Wall Street Journal suggest that CVS could close “dozens” of locations. CVS currently operates 9,000 pharmacy locations nationwide, with a presence in approximately 1,800 of Target’s 1,956 stores across the U.S.
• Strategic Move to Reduce Retail Footprint: The decision to close these pharmacies is part of CVS’s broader strategy to reduce its retail footprint. The company’s spokesperson explained that the move is based on an evaluation of changes in population, consumer buying patterns, and anticipated future health needs. CVS had previously announced its intention to close about 900 stores, approximately 10% of its U.S. locations, between 2022 and 2024. This strategic shift aligns with CVS’s broader transformation from a major drugstore chain to a large healthcare company.
• CVS’s Healthcare Expansion and Cost-Cutting Measures: CVS has intensified its push into the healthcare sector over the past year. Notable moves include the nearly $8 billion acquisition of healthcare provider Signify Health and a $10.6 billion deal to acquire Oak Street Health, a company operating primary care clinics for seniors. Simultaneously, CVS launched a cost-cutting program in 2021 as part of its expensive foray into healthcare, with plans to lay off 5,000 employees. These closures also follow protests by pharmacy staff, including CVS employees, who walked out in the fall to raise concerns about what they perceive as harsh working conditions jeopardizing both employees and patients. CVS has stated that it is actively engaging with staff to address their concerns directly.