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CVS closing 900 stores over next three years

By Simon Druker
CVS closing 900 stores over next three years
CVS Pharmacy is closing 900 of its stores over the next three years as it changes its business strategy to focus more on in-person healthcare. It will close 300 locations per year starting in spring 2022. File Photo by Jim Ruymen/UPI | License Photo

Nov. 18 (UPI) -- CVS announced plans Thursday to close 900 stores beginning early next year as the pharmacy chain shifts its focus to providing healthcare services and away from its traditional retail model.

The closures represent nearly 10 percent of the company's 10,000 locations.

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Closures will begin in the spring, with 300 scheduled each year for the next three years, CVS said in a press release.

Increased online pharmaceutical options, particularly from Amazon, have impacted the company's business.

CVS said it will do its best to relocate affected workers to other locations, but hasn't released a list of which stores will be shuttered.

The company plans to split its remaining stores into three distinct models to provide more in-person healthcare services.

"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," President and CEO Karen Lynch said in the release.

The closures will cost CVS between $1 billion and $1.2 billion in the fourth quarter.

The company says it 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."

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The company's stock was up more than 2.5 percent by midday Thursday.

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