CVS Health said Thursday it plans to shut down 900 locations over the coming three year period, WHDH reported.
The company said it evaluated shifts in population, consumer buying patterns, and future health needs to make sure it has the correct kind of stores in the right locations for customers and the business, the outlet stated.
Due to the findings, the company planned to cut back on store density in certain locations and close approximately 300 stores each year over the coming three years, beginning in spring 2022.
“CVS added that they are committed to offering impacted colleagues roles in other locations or different opportunities as part of its overall workforce strategy,” the WHDH article read.
The company detailed its plans in the announcement, noting, “As part of the company’s strategic review of its retail business, CVS Health will also create new store formats to drive higher engagement with consumers.”
Three models will “serve as community health destinations,” the company said, adding the models were sites dedicated to primary care services, an “enhanced version” of HealthHUB locations, and traditional CVS Pharmacy stores.
The company did not release a list of the stores that are set to close, according to CBS Boston:
The increase of online shopping reduced the need for people to shop at the thousands of stores run by chains such as CVS and Walgreens, according to the Associated Press (AP).
The company has some overlapping store locations, but GlobalData Managing Director Neil Saunders noticed another factor in the change announced Thursday.
He believes CVS neglected its retail business, which sent some of its locations “into the downward spiral of irrelevance.”
“Too many stores are stuck in the past with bad lighting, depressing interiors, messy merchandising, and a weak assortment of products,” Saunders explained via email. “They are not destinations or places where people go out of anything other than necessity.”
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