Video Source: YouTube, 12 News
CVS Health will close approximately 900 US stores over the next three years as part of a major shift from retail to healthcare services.
A drugstore chain based in Woonsocket, Rhode Island announced its decision Thursday — this will ultimately have an impact. 9% of 10,000 stores nationwide — Occurs after “assessing population changes, consumer purchasing patterns, and future health needs.”
The CVS did not disclose where it will be closed from the spring of 2022 and the number of employees who will be unemployed as a result, but said it would help affected people find another role in nearby stores. ..
According to the company, the closure will create a retail presence that ensures “the right type of store in the right place for consumers and businesses.”
As part of CVS’s efforts to readjust its retail strategy, the company plans to transform some stores into destinations that offer a variety of healthcare services, from flu shots to diagnostic tests. It also fills out prescriptions and maintains several places as a traditional store selling items such as milk, shampoo and cleaning products.
Karen Lynch, CVS Chief Executive Officer, said in a statement: We continue to focus on the competitive advantage offered by our presence in thousands of communities across the country, complementing our rapidly expanding digital presence. “
According to CVS, the closure is expected to incur impairment losses of $ 1 billion to $ 1.2 billion, or 56 to 67 cents per share, in the fourth quarter.
This move happens as the COVID-19 pandemic continues to accelerate. Changes in consumer behavior..
The imminent closure is also “Pharmacy desert, “If the consumer has to travel a considerable distance to reach the pharmacy.
In a note to investors, retail industry analyst and managing director Neill Sanders GlobalDataWrites that the closure is due to the CVS “too much overlap” and the dilapidated state of the store “pushing some of them into an irrelevant downward spiral.”
“In the past, too many stores have been stuck due to poor lighting, poor interiors, cluttered products, and a lack of assortment. It’s not a destination or place where people go out more than they need to,” Saunders said. Mr. says.
Over the years, drugstore chains like CVS and Walgreens have built thousands of physical stores nationwide to get closer to their customers’ homes, but the rise of e-commerce has reduced the demand for face-to-face shopping. bottom. Associated Press OK.
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