The company said Thursday that it will close about 300 stores a year for the next three years, nearly a tenth of its roughly 10,000 retail locations as it reduces store count density in some places.
The company also has been expanding the health care services it provides at many locations.
The closings make sense as
The company released no details Thursday on where the closings will occur. It did say they would start next spring.
Major drugstore chains routinely close underperforming stores or shutter locations for other business needs. CVS rival
The growth of online shopping has blunted the need for CVS and
“Too many stores are stuck in the past with bad lighting, depressing interiors, messy merchandising, and a weak assortment of products,” Saunders said in an email. “They are not destinations or places where people go out of anything other than necessity.”
Some will be traditional pharmacies that offer retail products as well as some health care services. Others will be dedicated to customer primary care, and the company will break out an enhanced version of its “HealthHUB” locations.
The company started introducing those stores a few years ago. The stores are geared toward helping customers monitor chronic conditions like diabetes and stay on top of their health. Those locations can include health care workers like dietitians as well as community rooms for things like yoga classes.
Drugstores have been redesigning their locations as they try to become known as more than just places to pick up prescriptions and cough syrup. They have become a key source of COVID-19 vaccines as well as annual flu shots.
The companies have dealt with staffing issues as they widen their focus. They’ve raised starting pay and hired thousands of additional workers for their stores.
But customers in markets like
A
The company also said it will have an immaterial impact on adjusted earnings per share next year.
Aside from operating drugstores and selling health insurance,
Shares of
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