CVS has announced that as part of its initiative to evaluate changes in population, consumer buying patterns and future health needs to ensure it has the right stores in the right locations, it will be closing approximately 300 stores a year over the next three years.
The changes will begin in the spring of 2022.
As part of the company's strategic review of its retail business, CVS Health will also create new store formats to drive higher engagement with consumers. The three models include:
- Sites dedicated to offering primary care services;
- An enhanced version of HealthHUB locations with products and services designed for everyday health and wellness needs; and
- Traditional CVS Pharmacy stores that provide prescription services and health, wellness, personal care and other convenient retail offerings.
As a result of the planned store closures, the company has revised its full year 2021 GAAP EPS guidance range to $5.46-$5.67 from $6.13-$6.23.
Karen S. Lynch, president and CEO of CVS Health, said: "Our retail stores are fundamental to our strategy and who we are as a company. 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."