For years, CVS Pharmacy has been a familiar sight in communities across America. You could find a CVS store within driving distance of almost every American household. However, CVS is now making a significant change by closing about 900 underperforming stores over the next three years. This strategic move aims to improve their financial performance and focus on delivering valuable healthcare services to customers nationwide.
Instead of being just another neighborhood convenience store, CVS wants to prioritize providing affordable healthcare options. With the closure of these stores, they will promote their HealthHUBs and Minute Clinic locations as alternatives to costly emergency room visits or doctor’s appointments.
To implement this plan, CVS will gradually close 300 stores per year, starting in spring 2022, until they reach the target of 900 closures. The company is committed to supporting the employees affected by these closures by offering transfers to other store locations or positions within the company. CVS values its hardworking employees and aims to minimize the impact of these changes.
While CVS is shifting focus towards digital experiences and healthcare, CEO Karen Lynch emphasizes the continued importance of retail stores in their overall strategy. In a news release, Lynch stated, “Our retail stores are fundamental to our strategy and who we are as a company. We remain focused on the competitive advantage provided by our presence in thousands of communities across the country, which complements our rapidly expanding digital presence.”
Industry experts, such as Neil Saunders, managing director of GlobalData, believe CVS’s decision to close stores is not surprising. According to Saunders, neglecting the stores has caused a decline in their quality, resulting in the loss of customers to competitors like Target and Sephora. To regain their customers’ trust, CVS needs to make improvements quickly.
Saunders highlights the importance of investing in both retail and healthcare services, as the environment in which these services are provided greatly impacts consumer choices. CVS must revitalize their stores, ensuring they are attractive, well-organized, and offer a diverse range of high-quality products.
CVS Pharmacy’s transformation signifies their commitment to meeting the evolving needs of customers. By modernizing their stores and prioritizing healthcare services, CVS aims to remain a trusted destination for communities nationwide.
