November 30, 2021 6:37 pm
CVS Health lays out plan to close hundreds of drugstores

CVS Health lays out plan to close hundreds of drugstores

CVS Health will shut down hundreds of drugstores in the coming three years as the retail giant adapts to changing customer demands and converts to new formats.

The company announced Thursday that it will close approximately 300 stores per year over the next three-years as it seeks to reduce store density in certain locations.

The total of around 900 amounts to nearly a tenth of the roughly 10,000 retail locations CVS Health operates. It also offers insurance and prescription drug plans to large clients such as employers and insurers.

The company will take an impairment charge between $1 billion to $1.2 billion for closings in the fourth quarter. The company’s earnings forecast won’t be affected by this charge.

Drugstore chains such as CVS , Walgreens and others have built thousands of locations across the country to be closer to consumers’ homes. However, in recent years the rapid growth of online shopping has slowed down the demand for this in-person convenience.

Shares at Woonsocket is a Rhode Island-based CVS Healthcare Corp . index that rose slightly on Thursday morning, while the wider trading indexes fell.

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