CVS to Close 900 Stores Over Three Years

CVS Health plans to close approximately 300 stores per year over the next three years in a new strategy to reduce its retail density in certain locations.
CVS Health store

Colleagues at the impacted stores will be offered roles in other locations or different opportunities. The new changes will begin in spring 2022. 

CVS plans to introduce new store models to drive higher engagement with consumers, including: 

  1. Sites dedicated to offering primary care services
  2. An enhanced version of HealthHUB locations with products and services designed for everyday health and wellness needs
  3. Traditional CVS Pharmacy stores that provide prescription services and health, wellness, personal care and other convenient retail offerings.

"Our retail stores are fundamental to our strategy and who we are as a company," Karen S. Lynch, president and CEO of CVS Health, said in a statement. "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."

The pharmacy retailer also announced several leadership changes. Neela Montgomery, currently executive vice president and president, CVS Retail/Pharmacy, has decided to leave the company. Prem Shah has been named to the newly created role of chief pharmacy officer and will oversee the omnichannel pharmacy strategy. On Jan. 1, 2022, Shah and Michelle Peluso will become co-presidents of CVS Health's retail business, with Peluso overseeing front-store strategy and operations.