CVS to close 900 stores in next three years

• CVS will focus on digital growth by turning its stores into destinations which offer a range of health-care services

• Shares of the company rose 2.81% at $95.34

CVS Health said on Thursday that it will shut down about 900 stores over the next three years, as consumers shift online during the coronavirus pandemic.

CVS announced it will focus more on digital growth by turning its stores into destinations which offer a range of health-care services.

Shares of the company rose 2.81% at $95.34.

Closing of stores will begin in spring 2022, the company said adding that about 300 stores will close per year.

CVS, which has nearly 10,000 U.S. stores, did not share the location of the stores being closed.

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The company said it will help the employees whose jobs are impacted with a different opportunity or role at another location.

Shift to digital

As people are getting online prescriptions and visiting doctors through telehealth, CVS is preparing itself to keep up with the change.

CVS said the closing of stores will be based on changes to the population, customer habits and health needs.

CEO Karen Lynch, though, said that stores will play an important role in the business.

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“Our retail stores are fundamental to our strategy and who we are as a company,” she said in a news release. “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.”

CVS is also shuffling some of its leadership roles. A new role, chief pharmacy officer, has been created which will be handled by Prem Shah.

Michelle Peluso, chief customer officer, and Shah will be the co-presidents leading the two parts of CVS’ retail business—the front of the store and the pharmacy.

Picture Credits: Getty Images