Updated Jan 12, 2024 - Business

CVS to close "dozens of pharmacies" inside Target stores

CVS pharmacy in a Target store

Select CVS pharmacies in Target stores will be closing in the next couple months. Photo: Jeffrey Greenberg/Universal Images Group via Getty Images

CVS is shutting down select pharmacies inside Target stores with closures starting in February, the retailer confirmed to Axios.

Why it matters: The drugstore industry has been hit by mounting challenges from worker shortages and surging competition from mail-order pharmacies, big-box stores like Walmart and online threats like Amazon.

What's happening: The closings are part of CVS' plan to "realign our national retail footprint and reduce store and pharmacy density," company spokesperson Amy Thibault told Axios.

  • "The pharmacy closures will begin in February and be completed by the end of April, and impacted employees will be offered comparable roles within the company," Thibault said in a statement.
  • The Wall Street Journal reports that "dozens of pharmacies inside Target stores" will be affected.

What they're saying: The closings are based on the company's "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," Thibault said.

Flashback: CVS bought Target's pharmacy business in 2015 in a $1.9 billion deal.

CVS Target pharmacies closing

The big picture: CVS is not alone in closing pharmacies. In June, Walgreens announced it would close 150 stores in the U.S.

  • Rite Aid — the nation's largest drugstore chain at one point in the 1990s before Walgreens took the crown — filed for Chapter 11 bankruptcy in October. The retailer has announced more than 100 closures in bankruptcy.

What's next: Prescriptions will be transferred to a nearby CVS before pharmacies close, CVS told Axios.

  • CVS said it is "not sharing a list of closing locations."

Editor's note: This article was updated with additional information including comments CVS sent to Axios.

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