CVS is closing 900 locations across the country.
CVS executives have noticed a shift in how their customers shop and are taking action to address it.
According to CNN, the convenience storepharmacy franchise will close 900 locations in the next three years.
According to the report, its stores make up about 10% of the company’s total footprint.
The decision was made in response to the store’s response to shifting “consumer buying patterns.”
The pharmacy announced on Thursday, Nov.
Store closures will begin in Spring 2022, with the goal of creating a retail presence with the “right kinds of stores in the right locations for consumers and for the business.”
The list of locations that will be closed has yet to be made public.
The closures, according to CEO Karen Lynch, are part of a larger realignment strategy.
Currently, there are 10,000 locations.
More health services, including primary care, will be added as part of the renovations.
An “enhanced version” of its HealthHub design is also in the works.
Lynch said in a statement, “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.”
She has been the CEO of CVS for a year.
Lynch became the Fortune 500’s 40th female CEO.
She’s worked for the firm since 2012.
CVS is expected to lose around (dollar)1 billion in the fourth quarter of 2021 as a result of the closures.
Employees from nearby locations will be offered jobs at other nearby locations.
Others should learn from CVS’s “too many overlapping locations” and outdated store model, according to Neil Saunders, retail industry analyst and managing director of GlobalData.
“Too many stores are stuck in the past, with dim lighting, dark interiors, cluttered merchandising, and a limited product selection.
“They aren’t places where people go for anything other than necessity,” Saunders added.
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