Pharmacy retailer CVS Health (NYSE:CVS) says it plans to close 900 stores over the next three years as it adjusts to shoppers buying more products online.
Shares of CVS rose 2.81% to close at $95.34. With the day’s gains, CVS shares are up about 40% this year, bringing its market value to $125.81 billion.
The company announced in a news release that it will focus more of its efforts on digital growth and turning its stores into destinations that offer a range of healthcare services, from flu shots to diagnostic testing.
Store closures will begin in spring 2022. The company said it plans to close about 300 stores a year over the next three years. In total, the closures will add up to roughly 9% of CVS’ nearly 10,000 stores across the U.S. The company has not said which locations will be shuttered.
CVS also did not say how many employees will lose their jobs because of the closures, but said it will help those who are impacted find a different opportunity or role at another location.
CVS is shaking up its business as the pandemic accelerates changes in consumer behavior. More people are getting prescriptions filled online, retrieving personal care items through curbside pickup and visiting with doctors through telehealth services.
The drugstore chain and health insurer said it is closing the stores based on changes to the population, customer habits and healthcare needs.
