CVS Health announced it intends to close approximately 300 stores a year for the next three years, starting in 2022, as part of a push to a more digital strategy, the company announced Thursday.
The company did not say how many of those store closings will be in New Jersey, where it has approximately 350 of its overall 10,000 locations.
“Changes to our store footprint won’t start until the end of Q1 2022 — we’ll provide more details, including specific locations, when available,” a CVS spokesperson said.
The news was part of a release announcing a number of executive moves, including the news that Prem Shah and Michelle Peluso will become co-presidents of CVS Health’s retail business, with Peluso overseeing front-store strategy and operations and Shah overseeing the omnichannel pharmacy strategy. The promotions will start Jan. 1.
“Prem and Michelle are ideally suited for their new roles and will be instrumental to CVS Health as we continue to execute against our strategy of delivering an integrated health care experience centered around the consumer,” CVS Health President Karen Lynch said.
As part of the company’s strategic review of its retail business, CVS Health will also create new store formats to drive higher engagement with consumers. Three distinct models will serve as community health destinations:
- Sites dedicated to offering primary care services;
- An enhanced version of HealthHUB locations with products and services designed for everyday health and wellness needs; and
- Traditional CVS Pharmacy stores that provide prescription services and health, wellness, personal care and other convenient retail offerings.
The company has been evaluating changes in population, consumer buying patterns and future health needs to ensure it has the right kinds of stores in the right locations for consumers and for the business.
“Our retail stores are fundamental to our strategy and who we are as a company,” Lynch said. “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.”