The pharmacy company is in the midst of a multi-year effort to reorganize its retail footprint.
Part of that plan included closing about 900 stores to ensure “the right kinds of stores in the right locations for consumers and the business,” CVS said in a statement to CNN.
The mass shutdowns have since been completed, leaving over 9,000 across the country, the majority of which are in California, with more than 1,000.
Closures made way for newer and updated stores, which CVS is now doing in 2025, with 270 more closures recently announced, according to a spokesperson for Forbes.
CVS stated that it intends to “open a dozen or more smaller format CVS Pharmacy locations in select communities nationally over the next year.”
“The new pharmacies will be introduced in select neighborhoods to help bridge gaps in care and make it easier for patients to access medications, immunizations, and other pharmacist-provided health-care services.”
Since the original 900 closures were announced in November 2021, a location reformatting has been in progress.
Some newer versions included sites dedicated to primary care services, while others featured traditional retail options and a pharmacy section in a smaller format with an updated design.
A third store model that will be introduced with the new CVS locations focuses on its HealthHUB, which provides customers with products and services for everyday wellness.
The spokesperson emphasized that this “customized approach,” in contrast to older, strictly traditional stores, can be “focused on the specific needs of the communities we serve” and “better support patients to ensure the right geographic coverage.”
CVS has yet to confirm which of the 270 stores will close, but it has stated that they will be those with low foot traffic or that already lead other high-performing stores in the area.
Competitors such as Walgreens have been reorganizing their retail footprints as part of a $1 billion cost-cutting program.
TURNING IT AROUND
Walgreens Boots Alliance CEO Tim Wentworth confirmed the plan in October, stating that approximately 1,200 locations would close.
Wentworth stated on a June earnings call that approximately 25% of Walgreens stores were “not currently contributing to our long-term strategy.”
About 500 closures are planned for 2025; 23 closed earlier this year, and 54 more were recently spotted with “closing down” banners.
The CEO stated that the company would be stronger following the shutdowns.
“When you look at our stores, the stores that were not on the closure list, we see those stores as being materially stronger, still not where they need to be, but materially stronger than the stores that we are closing,” he told me.
BANKRUPTCY WOES
Rite Aid is also in the process of closing at least 68 stores after filing for its second bankruptcy earlier in May.
Its first came in October 2023, citing approximately $8.6 billion in debt at the time.
When it debuted in 2024, it was able to close 800 stores and pay off $2 billion in debt, but it appeared to be insufficient.
It is also expected that many more Rite Aid locations will be sold.
The bankruptcy proceedings are still being finalized, and the company is reportedly in talks with a number of potential buyers.
CVS also made headlines recently when it announced that one million patients in 17 states would lose specific coverage.
CEO David Joyner also promised in February to reduce “egregious prescription price hikes” and chastised pharmaceutical companies for a $21 million increase.