CVS paring down pharmacy footprint inside Target: WSJ

JHVEPhoto/iStock Editorial via Getty Images CVS Health ( NYSE: CVS ) aims to close dozens of pharmacy locations that the healthcare giant is operating inside Target ( NYSE: TGT ) stores, The Wall Street Journal reported Thursday, citing a company spokeswoman. The closures will take place between February and April, she said, adding that the decision will be part of CVS’ plans to reduce its store count “based on our evaluation of changes in population, consumer buying patterns and future health needs.” According to the spokesperson, the affected employees will be offered other positions within the company, and customers served by stores that are closing will be directed to CVS’ other stores.

The Woonsocket, Rhode Island based healthcare giant, launched pharmacies across Target ( TGT ) stores in late 2015 when it acquired the retailer’s business for about $1.9B. Since then, it has expanded to nearly 1,800 locations inside Target’s ( TGT ) over 1,900 strong retail footprint. The decision will impact only a small percentage of TGT’s locations.

CVS ( CVS ) operates nearly 9,000 locations, and the company has previously said it is shutting down about 900 stores, or about 10% of its U.S. units, between 2022 and 2024. As of 2023 end, it had closed about 600 locations as its pivot to healthcare services continued. Similarly, CVS’ rival Walgreens ( WBA ) said recently that the company will optimize its retail footprint by about 200 stores this year as it seeks $1B in cost savings.

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