CVS Plans 900 Store Closures Over Three Years

CVS Health Corp CVS will close 900 stores over the next three years, nearly 10% of its U.S. locations, while adding more primary care services at remaining locations.
The pharmacy chain said it would close 300 stores a year while adding primary care offices at certain sites and converting more stores into so-called health hubs with offerings for everyday health and wellness needs.
“The company has been evaluating population changes, consumer buying patterns, and future health needs to ensure it has the right kinds of stores in the right locations for consumers and the business,” CVS said in a statement.
In connection with the planned store closures, the Company expects to record an impairment charge in Q4 of 2021 of $1 billion - $1.2 billion, or $0.56 to $.67 a share of earnings.
CVS has revised its FY21 GAAP EPS guidance to $5.46 - $5.67 from $6.13 to $6.23. The changes will begin in the spring of 2022.
CVS also said retail and pharmacy chief, Neela Montgomery, is leaving the Company a year after taking the post. Two CVS executives will replace her as co-presidents of CVS’s retail business.
Prem Shah, executive vice president of specialty pharmacy and product innovation, will assume the newly created role of chief pharmacy officer. Michelle Peluso, chief customer officer, will oversee the front-store strategy.
Price Action: CVS shares are up 2.53% at $95.08 during the market session on the last check Thursday.