CVS Health cited changing consumer needs and plans to close 900 pharmacies in the next three years. At the same time, it hopes to transform more and more institutions to focus on health services, including primary care.
CV, And other retailers, Doubled recently “Omnichannel” health strategy, So that customers can easily get the idea of care in a virtual way or in person at home.
The pharmacy chain plans to organize its stores into three forms: the traditional CVS pharmacy, an enhanced version of the “HealthHUB” store, and a website dedicated to primary care services.The company declined to elaborate further on its primary care plan, but In a recent Fortune interview, CEO Karen Lynch said that the company plans to transform hundreds of stores into locations dedicated to providing primary care.
As early as 2019, the company started an early version of this process, turning several of its stores into HealthHUB, which has more space dedicated to health and wellness services, such as MinuteClinics, support from nutritionists, and some common Screening.
Lynch CVS is expected to convert its 1,000 stores to HealthHUB by the end of the year Speaking on the May earnings call. These locations are tailored to be close to its Aetna and Caremark customers as its insurance subsidiaries Create a new health plan to motivate people Seek care at the CVS store.
In the process of implementing this strategy, CVS is closing some of its stores. Starting next spring, it plans to close 300 stores a year for the next three years.
So far, the company has hardly revealed the details of which locations will be closed. CVS spokesperson TJ Crawford wrote in an email that the company will consider “many factors,” including local market dynamics, demographic changes, store density, the needs of underserved communities, and the coverage of Aetna and Caremark.
“Our retail stores are critical to our strategy and our identity as a company,” Lynch said in a press release. “We remain focused on the competitive advantages provided by our business in thousands of communities across the country, which complements our rapidly expanding digital business.”
As a result of the closure, CVS plans to record $1 billion to $1.2 billion in impairment charges this quarter, related to the write-down of its leases, property and equipment.
In 2020, the flow of CVS people has decreased because fewer procedures and doctor appointments have reduced people’s refuge in place and fewer new prescriptions to fill out. However, as Covid-19 tests and vaccines brought more people back to its stores, its business has since rebounded.for Third quarter of 2021, Its retail/LTC division brought in revenue of US$24.99 billion, up from US$22.73 billion last year.
The changes in the store are also accompanied by changes in the leadership. Neela Montgomery, president of CVS retail and pharmacy, will leave the company at the end of the year, and Prem Shah and Michelle Peluso will become co-presidents of its retail business.
Photo Credit: Justin Sullivan/Getty Images
