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CVS Health To Close 900 Stores In The Next 3 Years

CVS will be closing 900 of its physical locations over the next 3 years.

CVS Will Trim 900 Stores Over The Next 3 Years

On Thursday, CVS Health (NYSE: CVS) reported it will close 900 stores over the next 3 years. This will trim an estimated 9% of its 10,000 U.S. drug store locations. This is in response to the shift in “consumer buying patterns.” This change is set to take place in Spring 2022, as the company plans to trim 300 stores per year until it meets its goal of 900 stores.

In the company’s news release it said they will direct more of their focus on digital growth and turning its physical stores into a place that offers a variety of health-care related services, such as diagnostic tests and flu shots. 

We remain focused on the competitive advantage provided by our presence in thousands of communities across the country, which complements our rapidly expanding digital presence,” stated CVS Chief Executive Officer Karen Lynch. 

The closure of these stores will cost CVS roughly $1 billion dollars in Q4 2021. Any employees that are affected by this will be offered jobs at other nearby locations.

On top of that the company is also making changes in leadership roles. They have created a Chief Pharmacy Officer, who they appointed to Prem Shah. Both Shah and Michelle Peluso, Chief Customer Officer, will now become Co-Presidents who will take the reins in leading the two parts of CVS’s retail business; pharmacy and retail. 

Shares of CVS gained over 1% during Thursday morning’s stock market trading session. The stock is up over 34% year-to-date.

Source: TD Ameritrade TOS

By Brandon Michael

Brandon Michael is a financial specialist and financial contributor to the stock market. He enjoys writing about rising stocks and how the market changes over time. He specializes in multimedia and events, as well as social media management and media contributing. He has managed and marketed hundreds of events, as well as grown social media pages upwards of 200,000 followers and everything in between. As an active social media influencer in the car community, he understands how to recognize trends and curate content for niches. From an early age, Brandon was fascinated by the power of social media and how it built companies and careers for many. Over time he has developed many different strategies for different platforms on how to grow different kinds of pages. In addition to social media skills, he is passionate about events, it is second nature to him to promote them and make sure that everything is executing perfectly. This has allowed him to partner with some of the largest companies in the industry to run events for hundreds of thousands of people. Brandon has written many articles for many notable top websites for the last 3 years. His focus in his writing is generally rising stocks and emerging trends in the stock market, as well as bringing companies with market potential to the frontlines of the media. It is easy for him to identify trends and do extensive research to make sure he’s providing the most accurate research possible. In his free time, he continues to improve his research skills and financial knowledge to continue providing the best work possible.

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