BOSSES of a major drugs chain have issued a warning as dozens of the retailer’s stores were plunged into uncertainty.
Fears are rising that the outlets could close for good.
And, it’s not poor sales that could cause the demise of the locations.
CVS pharmacies across Arkansas face uncertainty after a new law was passed in the state.
The law cracks down on pharmacy benefit managers and Sarah Huckabee Sanders, the Arkansas’ governor, claimed the organizations rip off shoppers.
“For far too long, drug middlemen called PBMs have taken advantage of lax regulations to abuse customers, inflate drug prices, and cut off access to critical medications,” she warned.
The new law would stop pharmacy benefit managers from owning drugstores.
A CVS spokesperson told Newsweek that the law would see drug costs hiked.
But, they tried to reassure shoppers by stating that all 23 pharmacies in Arkansas would continue trading.
The spokesperson shared fears that stores could be forced to close when the law comes into force in 2026.
Chiefs are said to be looking at the chain’s stores in Arkansas.
CVS Caremark is a PBM within the CVS Health portfolio and bosses say the organization plays a vital role in trying to cut costs for shoppers.
“We are transparent about medication costs and prioritize a high quality and more affordable approach to health care,” they said.
Meanwhile, CVS chiefs are already undergoing a restructuring process.
Bosses are closing another 270 locations over the course of this year.
A CVS store in Hagerstown, Maryland, will be closing on June 26.
US braces for '45,000 store closures'
Some 45,000 bricks-and-mortar stores could close in the next five years, experts have warned.
Several major retailers have announced store closures or gone out of business altogether in recent years.
In 2023, chains such as Foot Locker announced plans to close up to 400 outlets by 2026.
While, other well-known retailers like Tuesday Morning and Mitchell Gold + Bob Williams filed for bankruptcy in 2023.
Bed Bath & Beyond has closed all of its brick-and-mortar stores and is now an online-only retailer.
The most affected retailers have been clothing, consumer electronics, sporting goods, hobby, book, music, and home furnishing stores since the start of 2019.
UBS has predicted the total number of retail stores will drop by 45k from 958k to 913k.
Despite that, the report says that certain stores should thrive while others decline.
It said retailers such as Walmart, Costco, Home Depot, and Target, could be among the winners.
Shoppers who rely on the pharmacy are being transferred to another nearby CVS store.
The company has taken action to ensure customers don’t face any unexpected disruptions, per The Herald Mail.
Execs have revealed the thought process behind the sweeping shutdowns.
They explained that the company considers shopping behavior and the needs of the local environment.
Between 2022 and 2024, CVS chiefs have closed 900 locations.
The sweeping closures created fears of pharmacy deserts, but bosses were quick to stress that 85% of Americans will live within 10 miles of a CVS store.
CVS pharmacies will also appear in Target locations across the US.
CVS is not the only drugstore chain closing stores.
Around 1,200 Walgreens locations are to disappear and The U.S. Sun reported how a slew of Rite Aid stores are closing after chiefs filed for bankruptcy.
Rite Aid bosses are in the process of selling 1,000 stores.
GettyBosses have given update on the future of the locations (stock)[/caption]CVS closes 900 stores
CVS Health is finishing up its three-year plan to close 900 stores.
CEO Karen Lynch said it has shut down 851 so far, The Associated Press reported in August 2024.
The company announced the plan in November 2021, saying that the closures would lead to a retail presence that ensures it has the “right kinds of stores in the right locations for consumers and for the business,” per CNN.
The shutdowns amount to almost 10% of CVS’s footprint, in response to the shifting of “consumer buying patterns.”
The closures are part of a wider change in strategy of the company’s almost 10,000 locations.
Some stores have been removed to include more health services, such as primary care, and an “enhanced version” of CVS’s HealthHub layout.
“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,” Lynch said in 2021.
The shutdowns cost the company approximately $1 billion dollars in the fourth quarter of 2021, according to CNN.
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