CVS Stores Closing 2024: Is Your Neighborhood Pharmacy Disappearing Soon?

Since the pandemic began, store closings have become increasingly common. Even large retail chains had to close a number of their locations across the country. Although some layoffs have been significantly more severe than others, this has continued throughout the previous three years. Consumer Value Stores (CVS), one of the largest drugstore companies in the U.S., has also begun closing stores in 2022. CVS has experienced both temporary and permanent drugstore closures. Additionally, more places are shutting their doors. 

In January 2024, CVS Health announced that it closed some pharmacies located in Target stores.

The closures happened early in 2024, starting in February and ending in April. Amy Thibault, who leads communications for CVS, told Nexstar in a statement. Employees at those locations were offered similar roles within the company.

The Wall Street Journal reported that it was “dozens” of pharmacies. Employees who are affected are offered jobs at other CVS locations. Before a pharmacy closes, all prescriptions are moved to a nearby CVS Pharmacy so patients can still get their medicine.

Target, which has almost 2,000 discount stores in the U.S., didn’t comment on the closures and referred questions to CVS.

CVS didn’t give out a list of closing locations, and any prescriptions were moved to a nearby CVS Pharmacy beforehand to make sure patients could still get their medicine.

CVS has been operating pharmacies in Target stores since 2015. They bought the pharmacy business from Target for about $1.9 billion.

CVS Health bought Target’s pharmacy and clinic businesses in 2015 for about $1.9 billion. The deal brought 1,672 pharmacies across 47 states under the CVS name.

As of December 26, 2022, there were 9,669 CVS Pharmacy stores throughout the United States. California is the U.S. state with the most CVS Pharmacy stores. 1150 CVS stores, or nearly 12% of all CVS Pharmacy stores in the U.S., are located in California.

CVS announced plans in 2021 to close many stores nationwide every year. CVS stated that it plans to close 300 stores in 2022 as part of a three-year plan to close 900 stores. 

In short, By the end of 2023, CVS had already closed about 600 of the 900 stores it planned to close between 2022 and 2024.

About CVS

CVS, which is the largest drugstore chain in the U.S., told investors that it expects to spend more money on its pharmacy and insurance business. This might lower its profits over the next few years. Last year, CVS cut 5,000 jobs as part of a restructuring plan.

In 1963, there were three friends named Stanley Goldstein, Sidney Goldstein, and Ralph Hoagland started the first Consumer Value Store in Lowell, Massachusetts. They sold health and beauty stuff. A year later, they changed the name to CVS. In 1967, they started adding pharmacies to their stores in Cranston, Rhode Island.

As time passed, CVS grew a lot. In 1969, it was bought by the Melville Corporation. In 1972, it got even bigger by buying 84 Clinton Drug and Discount stores. And from then on, CVS kept growing by buying other companies.

From 1990 to 2004, CVS bought companies like Peoples Drugs, Revco, and Eckerd drug stores. In 2006, it bought MinuteClinic, a place where you can see a doctor or nurse at some CVS stores. In 2007, CVS merged with Caremark, a big pharmacy benefits manager.

In 2014 and 2015, CVS bought even more companies like Coram, Omnicare, Navarro Discount Pharmacy, and all of Target’s pharmacies and clinics. In 2018, it got Aetna, which changed how people get health care.

In 2014, CVS stopped selling tobacco products and started a program called Be The First to help people quit smoking.

During the COVID-19 pandemic, CVS helped a lot by doing COVID-19 tests and giving vaccines at nursing homes.

In 2023, CVS bought Signify Health and Oak Street Health to offer more health services.

Today, CVS Pharmacy is the biggest pharmacy chain in America. It has lots of stores, an online store, and health services. In 2024, some Target pharmacies will close as part of CVS’s plan to close some of its stores.

Why Did CVS Close Its Stores?

CVS is closing some of its locations because of changes in how people shop. More people are buying things online, and some people are stealing from stores, which is hurting their business.

The company is closing some stores to match where people live and how many stores are in each area. Many stores across the U.S. are locking up products like toothpaste because of all the stealing. Stores lost a lot of money to theft in 2022, and it’s expected to get worse in the coming years.

The CEO of CVS says that their stores are important, but they also want to focus on their online business. They want to make their stores more about healthcare and insurance.

Thibault said the closures were part of a plan to “adjust our national retail footprint and decrease the number of stores and pharmacies.” She said CVS looked at changes in population, shopping habits, and future health needs to match the right pharmacy with the right patient locations.

In 2021, CVS said it would close 900 stores over three years, also because of changes in population, shopping habits, and future health needs.

But there have been some problems. Investigators found that CVS didn’t help people who are deaf or hard of hearing well enough during appointments. They had to agree to do better.

Overall, CVS is changing because of how people shop and because they want to offer better healthcare services.

Also read – Does Target own CVS?

Number of CVS Store Closures Across the USA

CVS Pharmacy, Walgreens, and Health Mart were the top three pharmacies in the United States. In 2022, CVS Pharmacy led with 9,669 outlets across 52 states and territories.

In June 2022, CVS began closing stores, and throughout the fall, the company continued to shutter outlets in various states, including Pennsylvania, North Carolina, Maryland, and California.

On August 31, 2022, the Dayton Daily News reported that CVS was closing several locations, including four outlets in the greater Dayton, Ohio, area: 

Fairborn, Moraine, Brookville, and New Lebanon. 

These closures occurred between September 21 and October 5, 2022.

Ohio experienced significant CVS closures in 2022, with stores in Kettering, Harrison Township, and Hamilton permanently shutting down.

As part of its global initiative to reduce the number of stores, CVS also closed a location in New Jersey, the only one in the town of Metuchen.

Additionally, CVS closed stores in various other states, including Pennsylvania, North Carolina, Maryland, California, Florida, Texas, and Georgia.

Most recently, CVS announced the closure of its Central Avenue facility in Albany, New York, with doors permanently shutting on January 12, according to local NBC affiliate news Channel 13. Central Avenue Pharmacy has confirmed that it will accommodate clients from the closing CVS store.

In December 2022, the Swift Drug Company in Selma, Alabama, closed its doors after serving residents for 106 years. Medications from Swift Drug Company were smoothly transferred to nearby CVS Pharmacy stores to ensure uninterrupted patient service.

Affected staff were offered similar positions at other local locations, providing continuity for the workforce.

Closures of CVS Stores on Sunshine and Glenstone

CVS Pharmacy reported that it is South Glenstone Avenue location in Springfield would soon close.

Springfield customers and Glenstone have a 59-year relationship. It was constructed in December 1961 and was previously known as the Kats City Drug Store. Kivett, Myers & McCallum, a prominent architectural firm, created its design. Innovative building materials and distinctive geological connections have established themselves as iconic parts of Springfield’s heritage.

The largest pharmacy for the corporation was to be built at the southwest corner of Portland Street and Glenstone Avenue in Springfield, Missouri. Kivett, Myers, and McCallum were tasked with designing it. The location was chosen because it is close to the Glenstone and Sunshine junctions and the expanding southwest area of Springfield.

The superstore covered 74,500 square feet of space after 124 days of construction. Katz Drug used the building up until 1971. It was then merged with Skaggs Drug Company and changed its name to Skaggs Thrifty City.

Jewel Companies, the parent company of Osco Drug, bought Skaggs in 1984. Osco Drug ran a store here until 2007 when CVS Corporation bought it until 2019, when it was announced. 

The store would close on April 1 of that year. CVS operated a pharmacy here. Market Street Liquidation and Pallet Sales announced their purchase of the structure on July 17, 2022.

Other Pharmacy Chains Closing Stores: What’s Happening with Rite Aid and Walgreens?

Other pharmacy chains like Rite Aid and Walgreens are also closing stores. CVS didn’t say exactly which stores are closing, but they’re offering current employees the chance to work at other CVS locations. Another store in Albany, New York, also closed, though the chain did not say if this was part of their planned shuttering.

Rival pharmacies are making similar moves to close their doors, with Rite Aid and Walgreens also closing stores.

Rite Aid announced it would close two more stores in January 2024, following the closure of 25 stores, amid reports the company is preparing to file for Chapter 11 bankruptcy.

Rite Aid forecasts it will generate ‘approximately $650 million and $680 million’ in losses this year.

Rite Aid’s chief financial officer and executive vice president, Matthew Schroeder, said: “We’re constantly looking at the performance of stores, particularly ones that don’t have much lease life left on the lease, and determining whether we’ve got an opportunity to continue to maximize the profitability and the efficiency of the fleet.”

Also added, ‘I would expect us to continue to do that.’

Walgreens also closed a store in Berkeley, California, on August 23 last year and is planning to close at least 150 stores as part of a cost-saving strategy while making upgrades to remaining locations.

Future Plans of CVS Pharmacies: What’s Changing?

The future of CVS Pharmacies in the USA is about changing and improving. They want to make their stores more than just places to buy things. Instead, they want them to be like mini health centres where people can get important health services.

CVS is focusing on making health care easier for everyone. They want to do this by having lots of stores across the country. This way, more people can access the health services they need.

People’s preferences for shopping and health care are also changing. CVS knows they have to keep up with these changes to stay popular.

CVS and Walgreens have been buying lots of pharmacy stores for many years. But now, they’re more focused on making sure their stores are running efficiently. CVS plans to close about 900 stores by 2024 to help with this.

Besides just selling things, CVS is also looking into other ways to grow. They’re thinking about offering more health services, like vaccines and primary care.

Overall, CVS Pharmacies are working on becoming better places for health care and convenience. They want to be there for people’s changing needs.

Final Thoughts

In short, CVS closing stores is a big change in how people shop, caused by what customers like, stores joining together, and smart business choices. When stores close, it can affect neighbourhoods and workers, but it also shows CVS is adjusting to how people shop now. They’re looking at where their stores are and focusing more on health services to make things better for customers. Even though some might not like stores closing, it’s CVS thinking about the future and how to keep growing. They want to keep helping people with their health, making it easier for everyone across the country.