CVS announced on Thursday that it will be shutting dozens of stores across the country located inside Target stores.
A spokesperson for CVS told CNN that the decision to close select stores is “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.”
The chain said that those impacted by the closures will be “offered comparable” new positions within the company. The closings are expected to begin in February and conclude in April.
CVS purchased Target’s pharmacies and medical clinics in 2015 in a $1.9 billion deal that added over 1,660 new pharmacies to the chain’s index of stores, which is now estimated to be around 9,000 pharmacies.
The chain said that it is not yet disclosing which stores have been selected to be shuttered.
In August 2023, CVS cut 5,000 “non-customer facing” positions, and layoffs are expected to continue into this year.
The chain disclosed in November 2021 that it plans to close 900 stores by the end of 2024.
“Our industry is evolving to adapt to new consumer health needs and expectations. As part of an enterprise initiative to reprioritize our investments around care delivery and technology, we must take difficult steps to reduce expenses,” the company said at the time.
CVS was down over 13.5% year over year as of Friday afternoon.