Pharmacy chain says it will add health services to other locations, book roughly $1 billion restructuring charge
CVS Health Corp. said Thursday it will close 900 stores over the next three years, nearly 10% of its U.S. locations, while adding more health services at remaining locations.
The largest U.S. pharmacy chain said it would close 300 stores a year while adding primary-care offices at certain sites as well as converting more stores into so-called health hubs with offerings such as diagnostic testing, mental-health services and hearing exams.
“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.
In connection with the planned store closures, the company said it expects to record an impairment charge in the fourth quarter of 2021 of between $1 billion and $1.2 billion, or 56 cents to 67 cents a share of earnings.
A CVS spokesman said the company doesn’t yet have a list of which stores are closing, a process that will begin early next year.