Within the next three years, CVS, one of the largest pharmacy chains in the United States of America, is set to close 900 of its outlets. The number represents one-tenth of its total number of outlets – and many labour organizations have expressed huge concerns.
According to the company’s management, the company is closing the stores because they want to focus more on offering in-person health services. Currently, the outlets offer a wide range of services and sales of consumer goods and snacks – all of which will be stopped as a result of the rebranding.
As you will note, the COVID-19 pandemic made many Americans – and indeed people around the globe accustomed to seeking testing, treatments, and vaccinations in local drugstores around them. It appears that CVS is trying to take advantage of this opportunity to attract in-person customers and increase their revenue without having to invest too much capital in overheard and purchase.
The company, registered as CVS Health Corp, currently runs over 9,900 stores across the United States of America alone, said the decision to focus on in-person treatments was not made suddenly. Instead, they claim it has been in the pipeline since 2018, when they acquired the health insurer Aetna.
In this light, plans are already underway to start closing stores from next year, with the aim of shutting 300 stores every year for the next three years. However, they did not disclose the shops that they would be shutting.
The remaining shops will be converted into health centers that will cater to the treatment of everyday health issues and some chronic concerns.
“Our retail stores are fundamental to our strategy and who we are as a company,” the company’s chief executive Karen Lynch said.
“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.”
Currently, CVS is the largest pharmacy chain in the United States, ahead of their biggest rival Walgreens Boots Alliance.
Speaking on the development, Analyst Neil Saunders, the managing director of GlobalData, said the decision makes sense considering “CVS has neglected stores for far too long and has pushed some of them into the downward spiral of irrelevance.”
