CVS Health Corp. plans to close dozens of its locations in Target Corp. discount stores as the drugstore chain grapples with rising costs in its pharmacy business.
A number of CVS’s 1,800 pharmacies in Target stores will be closed between February and April, a CVS spokesperson said, without specifying the exact count.
Also see: 31 stores in California on Rite Aid closure list
The closures are part of a plan to “realign our national retail footprint and reduce store and pharmacy density,” the spokesperson said.
The biggest US drugstore chain, CVS has been cutting costs and warned investors back in August that rising expenses in its pharmacy and insurance businesses will take a toll on profit over the next two years.
Related: CVS launching reimbursement model to simplify drug pricing
Last year, the chain also implemented a restructuring plan to streamline operations and reduce costs, which included eliminating 5,000 non-customer-facing positions.
The upcoming closures were reported earlier by the Wall Street Journal, which also reported that affected employees would be offered jobs at other CVS locations. Customers’ prescriptions will be transferred to CVS pharmacies that will remain open.
Also see: Blue Shield California ditches CVS for Amazon and Mark Cuban’s drug company
