CVS will close 900 stores across the US and shift focus to new health-centered locations

• CVS plans to close 300 stores a year over the next three years, starting in March 2022.
• The chain will focus on growing specialized health and wellness locations.

CVS Health just announced plans to close 900 stores over the next three years, beginning in 2022.

The store closures will come at a pace of about 300 per year beginning next spring, according to a press release from the chain. In total, the 900 stores represent less than 10% of the chain's total footprint.

"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," CVS said in a statement. Based on these evaluations, it will reduce store density in some areas to focus on new store formats. Employees at the 900 stores to close will be offered roles at other stores, the chain said.

CVS says it will focus on three store formats going forward: locations focused on primary care health services, HealthHUB locations designed to provide health services like a wellness center and management for chronic diseases, and traditional CVS Pharmacies.

"Our retail stores are fundamental to our strategy and who we are as a company," CVS President and CEO Karen S. Lynch said in a statement. "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 has been focused on changing its business model over the last several years. In 2018 it merged with insurance company Aetna to form a massive chain of thousands of pharmacies and one of the biggest US insurers. In 2019, CVS announced plans to transform 1,500 stores into HealthHUB locations by the end of 2021, committing at least 20% of floor space to health and wellness products instead of snacks and other traditional convenience store items as customers increasingly buy those goods from online retailers like Amazon.

CVS and Aetna just announced their first combined health insurance plan, which will be offered in eight states in 2022.

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