10 per cent of the company’s retail locations are closing

CVS Pharmacy have announced that they are planning to close 900 company’s retail locations across the country, over the next three years. People are very much surprised after listening this, but only 10 per cent of the company’s retail locations are closing.According to the people, the CVS store closures should not have come as a surprise because they are the most recent developments in the long-running collapse of the retail pharmacy business in the United States.

CVS is the nation’s largest drugstore chain. CVS decision to close their oulet is because of some factors which they have highlighted. These factors are changes in population, customer purchasing patterns, and future health requirements.

Here’s the reason why CVS are closing 900 stores?

CVS successfully completed its $69 billion acquisition of Aetna in 2018, the largest health-care transaction in history. It has created a massive consumer base of about 40 million Americans. Therefore, CVS bet that the agreement would boost its income from those patients health plans while also reducing its expenditures.

George Hill, who is an analyst and covers the healthcare industry and company at the Deutsche Bank said that CVS is really pivoting and leaning into the healthcare aspects of business.

On Thursday, November 21, 2021, CVS has also announced that they will also renovate its retail strategy in which they have mentioned that their stores will have three distinct models from now onwards.

The models will be primary care locations, Health Hub stores with on-site dietitian, nurse practitioners, and lab services, as well as on-site treatment for chronic disease such as diabetes and asthma and also they will have strategies on traditional CVS Pharmacy stores.

Walgreens has also announced a number of store closings, including at least five in San Francisco. Meanwhile, the corporation stated that this is due to ongoing organised retail crime in the city.

Later on, the leaders in San Francisco promptly denied that assertion, assuming that the local closures were linked to Walgreens larger plan to close approximately 200 locations globally.