A MAJOR drug store chain is set to shut 270 locations this year as it shifts strategy to focus on high-demand areas.
The pharmacy giant blames changing consumer needs, buying habits, and population shifts for the closures.
GettyCVS is set to shut 270 branches in 2025[/caption] GettyThe pharmacy giant said it will focus its locations on high-demand areas[/caption] ReutersIt is not yet known when the closure wave will begin[/caption]But CVS shoppers don’t need to worry, as the retailer is planning to open smaller stores with fewer products, targeting locations with higher traffic.
This comes after 900 store closures between 2022 and 2024, leaving CVS with 9,144 pharmacies across the U.S.
A spokesperson said: “Even after the realignment work, 85% of people in the U.S. will still live within 10 miles of a CVS Pharmacy.”
While CVS hasn’t released a list of the stores set to close, locations with overlap or low footfall are expected to be the first one to go.
No timeline has been given yet either.
But it’s not all bad news as CVS is still expanding.
The company plans to open 30 new locations this year, including inside Target stores, and has added 100 new locations since 2022.
It comes after CVS confirmed it would be cutting around 2,900 jobs as bosses revealed they will be investing in technology.
the cuts will primarily impact those within the corporate sector, per the CBS affiliate WPRI-TV.
Mike DeAngelis, a spokesperson, explained that the job losses are a consequence of changing shopping trends, expectations, and disruption.
The cuts are part of a $2 billion cost-cutting drive intended to reduce business expenses.
Chiefs will also look at ways to boost efficiency within the company.
Execs have warned how vital it is for the company to remain competitive.
They also tried to give a reassuring message to shoppers.
“The reductions will not impact front-line jobs in our stores, pharmacies, and distribution centers,” said DeAngelis.
Meanwhile, a CVS executive has admitted that one of the store’s policies to combat theft has not been welcomed among all shoppers.
Bosses at the drugstore chain have resorted to locking items away in cabinets.
CVS is not alone in implementing the measure as locked cabinets are a feature in Walmart, Walgreens and Target stores.
And, the measure has not been appreciated by all shoppers.
Tilak Mandadi, the executive vice president of ventures at CVS Health and its chief digital, data, analytics and technology officer, admitted the anti-theft tool had proved unpopular.
“People really, really dislike locked cabinets,” he told the Wall Street Journal.
Bosses have taken customers’ fury on board and have developed a new tool that gives customers more autonomy.
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