The shares hit a 52-week high of $96.57 earlier this month.
Its stock is up about 40% this year, outpacing the 32% growth of the S&P 500. 'Stuck in the past'ĬVS has outperformed its drugstore competitors on Wall Street, as its health-care acquisitions and focus attract investors. He said it also considered the needs of underserved communities. Crawford said along with reviewing store density and market dynamics, the company decided which stores would stay open or close based on the number of people with Aetna and Caremark coverage nearby. It also owns prescription benefit management subsidiary Caremark.ĬVS spokesman T.J. Some of its benefits plans encourage Aetna members to seek care at CVS stores, like going to its MinuteClinics for no or a low copays. Stores will also be further integrated into its health insurance business, Aetna, which it acquired in 2018. And a third will remain traditional stores that fill prescriptions and sell items from shampoo to milk. One group will offer primary care services. The company has said it plans to have 1,000 HealthHub locations by the end of the year.ĬVS said it plans to use three different store formats. These locations sell a wider variety of medical products, offer more services from therapy appointments for mental health to screenings for chronic conditions and have other wellness features like rooms that can host yoga. One store format called a HealthHub has been expanded. It already has about 1,100 MinuteClinics, which provide urgent care for common illnesses like strep throat or administer flu shots. The drugstore chain and health insurer said it is closing the stores based on changes to the population, customer habits and health needs.ĬVS has been in the middle of an effort to turn more of its stores into health-care destinations, which could drive more foot traffic and drum up more claims for its insurance business. More people are getting prescriptions filled online, retrieving personal care items through curbside pickup and visiting with doctors through telehealth. The company declined to share the specific locations of stores that will shutter.ĬVS did not say how many employees will lose their jobs because of the closures, but said it will help those who are impacted find a different opportunity or role at another location.ĬVS is shaking up its business as the Covid pandemic accelerates changes in consumer behavior. In total, the closures will add up to roughly 9% of CVS' nearly 10,000 U.S. The company said it plans to close about 300 per year. Store closures will begin in spring 2022.
The company announced in a news release that it will focus more of its efforts on digital growth and turning its stores into destinations that offer a range of health-care services, from flu shots to diagnostic tests.