Neil Saunders, retail industry analyst and managing director of GlobalData, said in a note to investors that the closures are the result of CVS having “too many overlapping locations” and the dilapidated state of its stores that has “pushed some of them into the downward spiral of irrelevance.” Affected employees will be offered jobs at nearby locations. The closures will cost the company about $1 billion dollars in the fourth quarter of 2021. “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,” said CVS CEO Karen Lynch. That includes remodeling some stores to include more health services, such as primary care, and an “enhanced version” of its HealthHub layout. The closures are part of broader realignment of its retail strategy of its roughly 10,000 locations. The drug store chain said Thursday that the closures will result in a retail presence that ensures it has the “right kinds of stores in the right locations for consumers and for the business.” A list of locations shutting down, which will happen beginning next spring, was not immediately released. CVS Health is closing 900 stores over the next three years, amounting to nearly 10% of its footprint, in response to the changing of “consumer buying patterns.”
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