CVS Will Close 900 Stores Over Three Years, Create New Formats

(Bloomberg) -- CVS Health Corp. said it will close 300 stores a year over the next three years and take a charge of as much as $1.2 billion, part of a plan to decrease its store density in some areas.

As part of a strategic review, the pharmacy chain will create three new store formats designed to increase interaction with customers, CVS said in a statement. Part of the goal is to balance the types of stores needed in different locations, including ones that offer primary-care services.

Executive changes will accompany the moves. Prem Shah was named to a new role as chief pharmacy officer and as of Jan. 1 will become co-president with Michelle Peluso of CVS Health’s retail business. Current Executive Vice President Neela Montgomery decided to leave the company as of the end of 2021, CVS said. 

CVS will take an impairment charge of $1 billion to $1.2 billion in the fourth quarter related to the writedown of leases, property and equipment. 

The company’s shares rose less than 1% in premarket trading.

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