Back in the day, in the typical chain pharmacy, 80%+ of the business was in the front end and the balance was in the pharmacy/prescriptions. Thanks to the likes of Amazon, the front end of most chain pharmacies is DYING and the gross profit margins are close to HALF of what they were back in the day in the pharmacy- mostly thanks to the PBM industry. The large chain pharmacies are closing stores because they are not as profitable as they want and some are going the route of CVS in acquiring $10.6B acquisition of Oak Street Health to expand their primary care footprint. Oak Street is a Medicare-focused primary care company. After all, CVS owns Aetna Insurance which provides Medicare-C (Advantage) and Medicare Part D programs. Eventually, all of these medical healthcare companies will end up creating many “healthcare deserts” and some “healthcare oases”. Depending on the population density of where the pt lives, getting access to healthcare could be 10-30 miles from their home.
CVS closing select Target pharmacies, with plans to close 300 total stores this year
CVS is continuing to shutter storefronts in the new year and plans to close select pharmacies inside Target locations in the coming months.
The closures are set to begin in February and should be completed by the end of April. Spokesperson Amy Thibault did not address questions on how many stores are set to close, but The Wall Street Journal reported that “dozens” would be affected.
The closures are part of CVS’s plan to shutter roughly 900 ‒ or 10% ‒ of its stores. The pharmacy chain has closed about 600 stores since 2022 and expects to close the remaining 300 this year.
Why is CVS shuttering pharmacies?
Thibault said the closures are part of CVS’s plan to reduce store and pharmacy density.
The closures “are based on our evaluation of changes in population, consumer buying patterns and future health needs to ensure we have the right pharmacy format in the right locations for patients,” she said in an emailed statement.
Other major pharmacy chains, including Rite Aid and Walgreens, have also been shuttering stores amid rising competition, pressure on prescription profits and waning foot traffic. (Rite Aid also faces pressure to cut costs as it faces a slew of opioid lawsuits. The company filed for bankruptcy last year.)
A sign on the front door of CVS Pharmacy,1535 W. 26th St, announced the storefront will close but the pharmacy will remain open. The storefront will become an Oak Street Health primary care clinic sometime in 2024.
Pharmacists at the three chains have staged walkouts in recent months to protest deteriorating working conditions stemming from a lack of staff and resources.
Which CVS pharmacies are closing?
Thibault declined to share a list of the affected locations.
What happens to CVS employees?
Impacted employees will be offered comparable roles within the company, Thibault said.
What about the customers?
Patient prescriptions will be transferred to a nearby CVS Pharmacy before the closures.
Filed under: General Problems
I receive my monthly Rheumatoid Arthritis/Spondylitis medication from CVS Specialty pharmacy. No way can I afford it without copay from the manufacturer.
I refuse to fill a prescription Or buy anything from CVS or Target! If I worked for them and lost my job, I’d Sue them. I certainly wouldn’t work for them if they were the Last store on earth! Anyone else agree?