Trading Concept
  • Home
  • Trading News
  • Email Whitelisting
  • Privacy Policy
  • Home
  • Trading News
  • Email Whitelisting
  • Privacy Policy
No Result
View All Result
Trading Concept
No Result
View All Result
Home Trading News

CVS to close about 900 stores over next three years, as it shifts to digital strategy

by
November 18, 2021
in Trading News
0
0
SHARES
0
VIEWS
Share on FacebookShare on Twitter

RELATED POSTS

Who Is Still Buying Russian Oil And Gas?

Will mortgage rates hit 7% in near future? Here’s what the chief economist of the National Association of Realtors says about that

People walk by a CVS Pharmacy store in the Manhattan borough of New York City.

Shannon Stapleton | Reuters

CVS Health said Thursday that it will close about 900 stores over the next three years, as it adjusts to shoppers who are buying more online.

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 health-care services, from flu shots to diagnostic tests.

Store closures will begin in spring 2022. The company said it plans to close about 300 per year. In total, the closures will add up to roughly 9% of CVS’ nearly 10,000 U.S. stores. The company declined to share the specific locations of stores that will shutter.

CVS 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 a 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. The drugstore chain and health insurer said it is closing the stores based on changes to the population, consumer habits and health needs.

Going forward, CVS said it will have three different store formats to better engage customers. One group of stores will offer primary care services. Another will become HealthHubs, a new kind of store that has products and services health needs like treating common illnesses like strep throat, screening for chronic conditions like type 2 diabetes and providing services like therapist appointments for mental health. A third group will remain traditional stores that fill prescriptions and sell items from shampoo to milk.

“Our retail stores are fundamental to our strategy and who we are as a company,” CEO Karen Lynch said in a news release. “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.”

Along with revamping its stores, CVS has been weaving them together with its health insurance business, Aetna. It acquired Aetna in 2018. Some of its benefits plans encourage Aetna members to seek care at CVS stores, like going to its urgent care locations — called MinuteClinics — for no or a low co-pay.

It also owns prescription benefit management subsidiary, Caremark.

CVS spokesman T.J. Crawford said along with reviewing store density and market dynamics, the company also decided which stores would stay open or closed based on the number of people with Aetna and Caremark coverage nearby. He said it also considered the needs of underserved communities.

CVS said it expects to record an impairment charge of between $1 billion and $1.2 billion, or 56 cents to 67 cents per share in the fourth quarter tied on the planned store closures. The writedown covers the cost of operating leases, property and equipment.

As a result, it expects earnings in the range $5.46 to $5.67 per share. It previously forecast earnings of between $6.13 and $6.23. Its adjusted earnings per share guidance remains the same, since the impairment charges will not be factored in.

CVS is also changing some of its leadership roles. It has created a new role, chief pharmacy officer, and named Prem Shah to the position. Shah and Michelle Peluso, chief customer officer, will become co-presidents who will lead the two parts of company’s retail business — the front of the store and the pharmacy. Both will report to Lynch, who stepped into the top leadership role in February.

Neela Montgomery, president of CVS Retail/Pharmacy, will leave the company at the end of 2021.

ShareTweetPin

Related Posts

Who Is Still Buying Russian Oil And Gas?

by
July 3, 2022
0

Reuters Video shows Ohio officers killed unarmed Black man in hail of bullets AKRON, Ohio (Reuters) -Video released on Sunday...

Will mortgage rates hit 7% in near future? Here’s what the chief economist of the National Association of Realtors says about that

by
July 3, 2022
0

Will mortgage rates rise? Getty Images/iStockphoto Mortgage rates have been on a steady climb upwards: While they started the year...

Recession Measures and NBER

by
July 3, 2022
0

by Calculated Risk on 7/03/2022 03:18:00 PM On Business Cycle Dating from NBER: The NBER's definition emphasizes that a recession...

Altria’s Dividend Yield Spiked After Juul Ban. The Payout Looks Secure.

by
July 3, 2022
0

The FDA's bid to ban Juul products—like these at a shop in El Segundo, Calif., on a recent day—has weighed...

German road traffic agency says 59,000 Tesla vehicles have software glitch

by
July 3, 2022
0

In this article TSLA Tesla CEO Elon Musk speaks during the official opening of the new Tesla electric car manufacturing...

Next Post

Sen. Elizabeth Warren calls on SEC to investigate Trump SPAC deal

S&P 500 struggles for a second day, Nvidia leads gains in tech shares

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

email

Get the daily email about stock.

Please Enter Your Email Address:



By opting in you agree to our Privacy Policy. You also agree to receive emails from us and our affiliates. Remember that you can opt-out any time, we hate spam too!

MOST VIEWED

  • Forget Tesla — this auto stock is the one to buy right now, analyst says

    0 shares
    Share 0 Tweet 0
  • WHO says Covid vaccine booster programs will prolong pandemic

    0 shares
    Share 0 Tweet 0
  • Spin or Split? AT&T Has a Big Decision to Make on Discovery Stake.

    0 shares
    Share 0 Tweet 0
  • Here’s how Carl Icahn is positioning for a possible recession in America

    0 shares
    Share 0 Tweet 0
  • Some lawmakers and their families are betting thousands of dollars on crypto

    0 shares
    Share 0 Tweet 0
  • Home
  • Trading News
  • Email Whitelisting
  • Privacy Policy
All rights reserved by tradingconcept.net
No Result
View All Result
  • Email Whitelisting
  • Home
  • Privacy Policy

All rights reserved by www.tradingconcept.net