CVS is about to close 900 stores
NS drug store chain said Thursday that the closures will lead to a retail presence to ensure it has “the right kind of stores in the right locations for consumers and for businesses.” The list of decommissioning locations, which will begin next spring, was not immediately announced.
The closures are part of a broader restructuring of a retail strategy with about 10,000 locations. That includes remodeling some stores to include more medical services, such as primary care and “enhanced versions” of HealthHub layout.
“We remain focused on the competitive advantage provided by our presence in thousands of communities around the country, which complements our digital presence,” said CVS CEO Karen Lynch. our rapidly expanding digital.” She join the company A year ago.
The closure will cost the company approximately $1 billion in the fourth quarter of 2021. Affected employees will be offered jobs at nearby locations.
Neil Saunders, retail industry analyst and chief executive officer of GlobalData, said in a note to investors that the closures were the result of CVS having “too many overlapping locations” and The dilapidated state of the stores has “pushed some stores into a downward spiral. A spiral of irrelevancy.”
“Too many stores of the past were stuck with bad lighting, shabby interiors, messy merchandise, and weak product assortment. They weren’t destinations or places where people went out for anything. nothing but necessity,” Saunders said.
CVS (CVS) shares increased 1% at the beginning of the transaction. Shares are up nearly 40% for the year.
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