CVS is closing 900 stores across the United States.
CVS management have noticed a change in their consumers’ shopping habits and are taking action to address it. According to CNN, the convenience storepharmacy chain would close 900 locations over the next three years. According to the report, its stores make up about 10% of its total footprint. The decision was made in reaction to the store’s response to shifting “customer buying trends.” The drugstore announced the closures on Thursday, Nov. 18, promising to develop a retail presence with the “appropriate sorts of stores in the right locations for consumers and for the business.” In the spring of 2022, stores will begin to close. The list of places that have been chosen for closure has not been made public.
The reductions, according to CEO Karen Lynch, are part of a bigger restructuring effort. Currently, there are 10,000 places. More health services, including primary care, will be added as part of the redesign. An “improved version” of its HealthHub layout is also in the works.
Lynch said in a statement, “We remain focused on the competitive advantage afforded by our presence in hundreds of communities around the country, which complements our fast expanding digital presence.” She has been the CEO of CVS for a year. Lynch’s ascension makes her the Fortune 500’s 40th female chief executive. She’s worked for the firm since 2012.
CVS is estimated to lose around (dollar)1 billion in the fourth quarter of 2021 as a result of the closures. Employees from neighboring locations will be offered jobs at other nearby locations.
Others should learn from CVS’s “too many overlapping sites” and antiquated shop format, according to Neil Saunders, retail industry analyst and managing director of GlobalData, which has “pushed some of them into the downward spiral of irrelevance.”
“Too many establishments are trapped in the past, with dim lighting, drab interiors, disorganized merchandising, and a limited product selection. They are neither vacation spots or places to which people travel for reasons other than necessity “Saunders was added to the mix.