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

CVS Health plans to close choose pharmacies inside Target stores early this 12 months, an organization spokesperson mentioned Thursday, as retail pharmacy chains in the U.S. wrestle to increase earnings. 

The closures will start in February and end by the finish of April, the spokesperson mentioned in an announcement. She added that workers affected by the closures will likely be supplied comparable roles inside CVS, and prescriptions will likely be transferred to a close-by CVS pharmacy earlier than a location closes.

The spokesperson didn’t disclose what number of stores could be shuttered, however a report from The Wall Street Journal on Thursday mentioned CVS would close “dozens” of areas.

CVS operates 9,000 pharmacy areas nationwide. The firm has a pharmacy in about 1,800 of Target’s 1,956 stores in the U.S., in accordance to a Target spokesperson. 

The Target spokesperson declined to touch upon the closures or share plans for the closed CVS areas. 

The determination to shutter the stores is a part of CVS’ effort to scale back its retail footprint “based mostly on our analysis of adjustments in inhabitants, shopper shopping for patterns and future well being wants,” the CVS spokesperson mentioned.

In 2021, CVS mentioned it might close about 900 stores, which is about 10% of its U.S. areas, between 2022 and 2024, as the firm pushes to remodel itself from a serious drugstore chain into a big health-care firm.

CVS has deepened that push over the previous 12 months with its practically $8 billion acquisition of health-care supplier Signify Health and $10.6 billion deal to purchase Oak Street Health, which operates main care clinics for seniors.

But the firm additionally launched a cost-cutting program final 12 months as a part of that costly push into well being care, with plans to lay off 5,000 workers.

The closures additionally come after pharmacy workers from CVS and different drugstore chains walked out in the fall to protest what they name harsh working circumstances that put each workers and sufferers in danger. CVS has instructed CNBC that the firm is partaking with workers to immediately deal with any issues they may have.

— CNBC’s Melissa Repko contributed to this report.

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