CVS Is Forever Closing Hundreds of Stores and the Reason Why Will Surprise You
Walgreens is looking for a new chief executive after the person holding that position, Rosalind Brewer, stepped down on September 1, 2023. Meanwhile, Rite Aid is considering filing for Chapter 11 bankruptcy and closing multiple store locations.
CVS has been intending to close stores for awhile now. Back in 2021, the company made a policy change in an attempt to cut costs. At the time, the company said, “The company has been evaluating changes in population, consumer buying patterns and future health needs to ensure it has the right kinds of stores in the right locations for consumers and for the business. As part of this initiative, CVS Health will reduce store density in certain locations and close approximately 300 stores a year for the next three years.”
A spokesperson for CVS added, “We consider many factors when making store-closure decisions, including maintaining access to pharmacy services, local market dynamics, population shifts, a community’s store density, and ensuring there are other geographic access points to meet the needs of the community.”
In 2023, two years after the policy change was made, multiple stores have already been closed around the county, including in places like Houston, Kansas City and San Francisco. Many more stores will close their doors by the end of 2024. As many as 900 locations may close their doors before the end of 2024.
While the thought of your local CVS possibly closing in the near future may not be a good thing, there is good news. CVS plans to start a new company called Cordavis with the goal of providing medication to consumers at a lower price. They could accomplish this through direct negotiations with drug manufacturers and by creating biosimilar medication that they would sell at a lower cost.
Does it surprise you that CVS is planning to close so many stores?