CVS Health plans to close selected pharmacies within Aim stores earlier this year, a company spokesperson said Thursday, as retail pharmacy chains in the U.S. struggle to boost profits.
The closures will begin in February and end at the end of April, the spokesperson said in a statement. He added that employees affected by the closures will be offered comparable roles within CVS, and prescriptions will be transferred to a nearby CVS pharmacy before a location closes.
The spokesperson did not disclose how many stores would close, but a Wall Street Journal report on Thursday said CVS would close “dozens” of locations.
CVS operates 9,000 pharmacies nationwide. The company has a pharmacy in about 1,800 of Target's 1,956 U.S. stores, according to a Target spokesperson.
Target's spokesperson declined to comment on the closures or share plans for the closed CVS locations.
The decision to close the stores is part of CVS's effort to reduce its retail footprint “based on our assessment of changes in population, consumer purchasing patterns and future health needs,” the CVS spokesperson said.
In 2021, CVS said it would close about 900 stores, representing about 10% of its U.S. locations, between 2022 and 2024, as the company attempts to transform itself from a major pharmacy chain to a large healthcare company. medical.
CVS has deepened that momentum over the past year with the nearly $8 billion acquisition of health care provider Signify Health and a $10.6 billion deal to buy Oak Street Health, which operates primary care clinics for old people.
But the company also launched a cost-cutting program last year as part of that expensive push into health care, with plans to lay off 5,000 employees.
The closures also come after pharmacy staff at CVS and other pharmacy chains walked out in the fall to protest what they call harsh working conditions that put both employees and patients at risk. CVS told CNBC that the company is working with staff to directly address any concerns they may have.
— CNBC's Melissa Repko contributed to this report.
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