CVS is at an interesting crossroads these days.
On the one hand, the company bought Target’s pharmacy business last year and rebranded all the clinics inside the big-box retailer with CVS Pharmacy signage. With that move alone, CVS added nearly 1,700 pharmacies in 47 states to its portfolio!
But on the other hand, the pharmacy chain is looking for cost efficiencies.
That’s led CVS Health executives to tell investors and analysts on Dec. 15 that a slew of store closures are imminent in early 2017, according to ChainStoreAge.com.
70 stores closing in early 2017
As America’s leading retail pharmacy, CVS has more than 9,600 locations nationwide. But there’s uncertainty surrounding the Affordable Care Act as President-elect Donald Trump prepares to take office — and how it will impact CVS — so the pharmacy feels a little belt-tightening is in order.
The closings of a reported 70 stores will results in a $265 million benefit to the company, according to Dave Denton, CVS EVP and CFO.
Clark.com has reached out to the media relations division of CVS Retail Products and Services for a list of the coming store closures.
When we hear back from them, we’ll be sure to update this story for you!
Why you shouldn’t buy groceries at the drugstore chains
Between the three national drugstore chains — CVS, Rite-Aid and Walgreens — there are more that 23,000 locations across the country. The stores have become such a fixture of suburban life that some busy intersections even have all three chains represented!
As they’ve grown, Clark says all three are dedicating about 25% of their square footage for grocery items, creating almost like a mini-supermarket with soft drinks, bread, milk, eggs, canned soups and more.
But a ConsumerWorld.org survey found that the national drug store chains are up to 36% more expensive on grocery items than traditional supermarkets.
So if money matters to you, know that the chain drug stores are not necessarily friendly to your wallet when it comes to food items. They’re all about convenience instead.