US retailer CVS to close 900 stores to focus on health care

By Ovunc Kutlu

ANKARA (AA) - CVS Pharmacy announced Thursday that it is planning to close around 300 stores a year for the next three years.

Approximately 900 drugstores make up nearly 10% of the company’s locations across the US, while closures are set to begin in the spring of 2022.

"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," it said in a statement.

The move comes as the drugstore chain aims to focus more on health care services, partially moving away from retail.

Parent company CVS Health will create new store formats for higher engagement with consumers, offering primary care services, products and services for everyday health and wellness needs, while traditional CVS pharmacies will continue to offer prescription services, health, wellness, personal care and other retail goods.

The closures are estimated to cause an impairment charge of $1 billion to $1.2 billion for the company in the fourth quarter, it noted.

CVS Health’s stock price was up almost 2.9% at 12.10 p.m. EDT on the New York Stock Exchange.