CVS to close 900 stores over three-year period

Elvera Bartels

Image: Courtesy CVS Health and fitness

The nation’s premier pharmacy chain CVS programs to near 900 merchants nationwide in the next 3 years as it restructures alone to offer you a lot more health and fitness providers in the remaining locations.
CVS Health and fitness will develop 3 new unique keep formats aimed at driving higher engagement with people and to provide as community health and fitness places.

These include classic CVS Pharmacy merchants, which will present prescription providers and health and fitness, wellness and private treatment, sites specializing in principal treatment support choices, and increased variations of HealthHUB locations, which offer you screenings, monitoring, counseling and remedy solutions, as properly as merchandise for prevalent health and fitness and wellness requirements.

The corporation at the moment operates just about ten,000 merchants throughout the U.S. It is unclear which merchants will near, while the course of action will commence next yr, a CVS spokesperson informed The Wall Road Journal.

The keep closures are envisioned to be noted in CVS financials as between $1 and $1.two billion.

In the announcement, CVS named Prem Shah to the freshly developed publish of main pharmacy officer. Shah will oversee the omnichannel pharmacy tactic.

WHY THIS Matters

Again in June 2019, CVS declared programs to open up another 1,five hundred HealthHubs throughout a two yr time period.

Lisette Huyskamp, main marketing officer at Productsup, mentioned that when some people today may perhaps appear at CVS’ keep closures as a indication that in-keep purchasing is slowing, it must be found as a strategic go to revitalize its in-keep ordeals.

“By condensing keep density, the retailer is capable to emphasis on enriching the purchasing expertise in its existing locations to adapt to the altering requirements of people,” she added. “Reevaluating in-keep and on the web choices is something each individual retailer must be accomplishing.”

From Huyskamp’s point of view, in-particular person providers are continue to most popular for particular providers, this sort of as quick health and fitness and wellness requirements, so retaining a physical presence is crucial.

“Even so, that physical purchasing expertise requirements to be value consumers’ time,” she continued. “If merchandise are out-of-inventory or you should not match the information people found on the web, brand name loyalty turns into fractured.”

There are other ordeals that people favor to get treatment of on the web, this sort of as refilling prescriptions or acquiring a quick professional medical problem answered through a virtual appointment, she mentioned.
“To be profitable in modern sophisticated retail landscape, it can be not just about building each individual support and product or service available in each individual channel,” she mentioned. “It can be about pursuing the shopper and having the appropriate presence at each individual touchpoint.”

That suggests each individual retailer requirements to have a product or service-to-shopper (P2C) tactic to superior control their product or service information benefit chains and endure in the omnichannel globe.

THE Much larger Craze

CVS faces competitors from other pharmacy merchants, this sort of as Walgreens Boots Alliance, which is including similar health and fitness facilities.

All represent competition to classic health and fitness vendors.

CVS Health and fitness serves an believed 38 million people today through health and fitness insurance merchandise and connected providers, together with a Medicare Benefit featuring and a  standalone Medicare Element D prescription drug strategy.

ON THE Record

“Our retail merchants are essential to our tactic and who we are as a corporation,” Karen Lynch, president and CEO of CVS Health and fitness, mentioned by assertion. “We keep on being centered on the competitive gain furnished by our presence in thousands of communities throughout the country, which complements our quickly expanding digital presence.”
 

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