CVS Health is continuing its plan to reshape its pharmacy and retail business by closing 271 more stores across the country. This comes after already shutting down 900 locations between 2022 and 2024. The company now operates just over 9,000 stores nationwide and says these closures are part of a strategy to better serve customers, not a reaction to economic problems.
Why Is CVS Closing Stores?
CVS says it is closing stores based on several factors, including population changes, how customers shop, the number of pharmacies in an area, and community health needs. A company spokesperson told Newsweek that the goal is to have the right types and numbers of stores in the right places to meet health, wellness, and pharmacy care demands.
Although 271 stores will close, CVS estimates that 85% of Americans will still live within 10 miles of a CVS Pharmacy. The company also plans to open 30 new stores during this period to better position itself.
Impact on Customers and Competition
The closures will affect many customers who will need to visit competitors for prescriptions and essentials. This comes shortly after Rite Aid filed for bankruptcy and announced it would close at least 100 stores. Rite Aid’s prescription business is being transferred to CVS, Walgreens, and other pharmacies.
A judge ordered prescriptions from about 1,000 Rite Aid locations to be moved to other retailers. CVS is expected to take on about 625 Rite Aid pharmacies and will operate 64 Rite Aid stores as part of a smooth transition.
Rite Aid’s CEO, Matt Schroeder, emphasized that the changes aim to protect customers’ access to pharmacy services while preserving jobs for some employees.
Recent Challenges for CVS
CVS has also faced some recent customer service problems. Some stores closed earlier than scheduled, which left customers confused. In another incident, some customers experienced delays in receiving critical medication due to a serious error, forcing long waits for a fix. The company apologized for these issues and is working to improve service.
CVS’s store closures and restructuring are part of a long-term plan to better meet customer needs in a changing healthcare and retail environment. While some consumers will face inconvenience, CVS aims to ensure most Americans continue to have access to pharmacy care nearby. Taking over Rite Aid’s prescriptions will increase CVS’s role as a major pharmacy provider in the US.