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CVS to close 900 drugstores in three years to beef up health services By Reuters

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© Reuters. FILE PHOTO: Individuals stroll by a CVS pharmacy retailer in Manhattan, New York Metropolis, New York, US, November 17, 2021. REUTERS/Andrew Kelly

(Reuters)-CVS Well being Corp will shut about 900 shops over the subsequent three years, it mentioned on Thursday as the corporate tries to adapt to altering shopper preferences by pivoting to new retailer codecs that provide extra well being companies.

Greatest recognized for its chain of drugstores in additional than 9,900 areas, the corporate has been working to increase its companies because it acquired well being insurer Aetna (NYSE:) in 2018.

CVS mentioned that as a part of its strategic overview it will create an enhanced model of its well being hubs that provide remedy for frequent illnesses in addition to power care so as to add extra prospects.

The discount in shops will end in CVS taking an impairment cost of between $1 billion and $1.2 billion within the fourth quarter.

As a part of the brand new technique, the corporate additionally created a brand new place of chief pharmacy officer and appointed govt vice chairman of specialty pharmacy and product innovation Prem Shah to the position.

“We see this as according to our anticipated LT (long-term) technique for CVS, shifting to develop managed care and care supply, whereas shrinking legacy bricks-and-mortar retail enterprise,” mentioned Bernstein analyst Lance Wilkes in a be aware.

Rival Walgreens Boots Alliance (NASDAQ:) additionally lately shifted focus past its drugstores, investing $5.2 billion in VillageMD and $330 million in post-acute and residential care supplier CareCentrix.

CVS reduce its annual 2021 revenue per share forecast to between $5.46 and $5.67 from $6.13 to $6.23, however caught to its adjusted revenue view saying there will likely be no affect from the shop closures this 12 months and the subsequent.

It additionally mentioned Neela Montgomery, president of CVS Pharmacy, would go away firm on the finish of 2021.

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Abhishek Tiwari is the Author & Founder of the CyberYukti.com. He is passionate about Blogging & Digital Marketing.

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