(ConservativeJournal.org) – CVS is embarking on a significant retail transformation that will result in the closure of hundreds of stores across the country, apparently responding to shifts in consumer behavior toward online shopping because of the pandemic and concerns about rising crime rates.
In 2021, the major drugstore chain initiated a policy to close around 300 stores per year, with the final goal of shutting close to 1,000 stores by 2024. This announcement has gained renewed attention amid a wave of recent shoplifting incidents at CVS outlets.
Like many retailers in the US, CVS is adapting to changing consumer patterns in the post-pandemic era, where online shopping has surged in popularity. The accessibility of pharmacy services to the communities and a surge in shoplifting incidents which negatively impacts in-store sales are also crucial consideration.
CVS recognizes the growing trend of customers filling prescriptions online, using curb-side pickup for personal care items, and engaging in telehealth consultations with doctors.
Other pharmacy chains are taking similar actions. Rite Aid recently announced the closure of two more stores, following the shutdown of 25 stores earlier this year, amid speculation about an impending Chapter 11 bankruptcy filing. Rite Aid anticipates significant losses next year.
Walgreens is also planning to close stores to save money measures while upgrading its current remaining locations.
CVS is slowly striving to convert more of its stores into healthcare destinations to boost claims for its insurance business. CVS also aims to expand its HealthHub business, despite a June investigation revealing the company’s failure to provide proper interpretation services for deaf or hard-of-hearing individuals during medical appointments.
Although CVS has not disclosed specific store closures, it has closed locations in Des Moines, Iowa, Houston, Missouri, and Tallahassee in March. The company assures that current employees will have the option to continue working for CVS. CEO Karen Lynch emphasizes the importance of retail stores in the company’s overall strategy while acknowledging their digital expansion.
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