CVS has announced plans to close 270 stores in 2025, a continuation of its significant transformation strategy initiated in 2021, which originally aimed to shutter up to 900 locations nationwide. This restructuring reflects an effort to optimize its store footprint by focusing on strategic locations that better serve customers and align with the company’s business objectives.
Over the past three years, CVS has already closed more than 850 stores, and with the impending closures, it aspires to modernize its retail model. The company is shifting towards smaller facilities that offer personalized services and integrated health offerings. One of the key innovations is the introduction of HealthHUBs, which are designed to enhance daily wellness through pharmaceutical services and targeted products. These new locations aim to combine pharmacy services with basic products and primary care areas, catering to the rising demand for accessible health services in communities.
This strategic shift positions CVS distinctively compared to its competitors, Rite Aid and Walgreens. While both have also announced store closures—Rite Aid is currently in its second bankruptcy process and plans to close at least 68 stores, and Walgreens intends to eliminate approximately 500 locations—CVS’s approach is viewed as more systematic. The company emphasizes that its focus isn’t solely on cost-cutting but on adapting its physical presence based on the performance of each store. Locations with low foot traffic or those near higher-performing stores are slated for closure, allowing CVS to invest in new pharmacies in strategic neighborhoods for better healthcare access.
With this selective approach, CVS aims to enhance the quality of patient-centered services, ensuring that it meets evolving consumer needs while solidifying its presence in communities that require comprehensive healthcare solutions. This forward-looking strategy not only addresses current challenges in the retail pharmacy sector but also highlights CVS’s commitment to improving health outcomes in the locales it serves.