CVS will close dozens of pharmacies in Target stores in February

CVS, the largest pharmacy chain in the US, intends to close dozens of its locations within Target stores beginning in February until the end of April.

A CVS Health spokesperson said the move is in line with their efforts to streamline operations based on their “evaluation of changes in population, consumer buying patterns and future health needs”.

The spokesperson added that clients with prescriptions in the affected stores will have their medication needs transferred to a nearby CVS Pharmacy before the closures take place to ensure that “patients have uninterrupted access to pharmacy care”.

CVS operates around 1,800 locations inside Target stores, which the company acquired from the giant retailer in late 2015 for almost two billion dollars.

The pharmacy giant has not given details on the exact locations that will be shuttered, but has said that affected employees will be offered similar positions within the company.

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CVS plans to cut 5,000 positions

Last year, the drugstore chain began implementing a scheme to restructure that would result in slashing 5,000 jobs. The company warned investors over last summer that its profits over the next couple of years would be affected by rising costs in its pharmacy and insurance ventures.

CVS had announced that it planned to shut down 10% of its 9,000 stores between 2022 and this year. The company had closed 600 of these branches by the end of 2023.

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Pharmacy chains close locations to cut mounting costs

Drugstore chains have been trying to minimize expenses to cope with decreased consumer spending as they face stiff competition.

CVS rival Walgreens announced in June last year that it would shut down 150 locations throughout the US, while Rite Aid, once the country’s largest pharmacy chain, filed for Chapter 11 bankruptcy in October last year.