Why are all the CVS closing?
Asked by: Prof. Manley Koss | Last update: November 8, 2025Score: 4.6/5 (34 votes)
Why is CVS closing so many stores?
Within the last year, the company has also cut about 5,000 jobs, per The Wall Street Journal. The newspaper reported that when it spoke to a CVS spokesperson, they said the effort to pare down has been made “based on [the company's] evaluation of changes in population, consumer buying patterns and future health needs."
Why is CVS having trouble?
Over the last few years, CVS has struggled with declining profit margins at its retail pharmacies, as well as rising costs of patient care through its insurance unit Aetna, which generates around a third of the company's revenue. So far, CVS has cut its 2024 earnings forecast for three straight quarters.
Why are all the pharmacy stores closing?
Changing consumer trends and market dynamics are leading to hundreds of pharmacy store closures in the U.S. Brick-and-mortar locations are losing to mail-order and digital options, according to a J.D. Power study of pharmacy customers.
Why is CVS Walgreens in trouble?
The simplest part of the problem is scale. CVS and Walgreens grew massive nationwide footprints of more than 9,000 and 8,000 stores, respectively. They gobbled up mom-and-pop shops and signed long-term leases for prime locations on street corners.
Why Walgreens And CVS Are Shutting Down Thousands Of Stores
Is CVS going out of business in 2024?
Similar to Rite-Aid and Walgreens, the pharmacy is making a huge shift that will impact customers. Your local CVS may be closing its doors for good. The drugstore chain is in the process of shuttering "roughly 300" locations across the country in 2024, a spokesperson confirmed to Good Housekeeping.
What is the real reason Walgreens is closing?
Walgreens is closing more locations. Walgreens is closing approximately 1,200 locations as the drug store chain struggles to contend with online competitors and declining prescription drug payments. By 2027, about one in seven Walgreens currently open will close its doors.
What stores are closing in 2024?
- Advance Auto Parts. ...
- American Freight. ...
- Big Lots. ...
- Buybuy Baby. ...
- CVS. ...
- Denny's. ...
- Family Dollar. ...
- JOANN Inc.
Why are small pharmacies going out of business?
This has been happening all over the country, a New York Times investigation found. P.B.M.s, which employers and government programs hire to oversee prescription drug benefits, have been systematically underpaying small pharmacies, helping to drive hundreds out of business.
Is CVS having financial problems?
Financial pressures have forced CVS to lower its earnings outlook three times this year. In a cost-cutting move, the company recently laid off approximately 2,900 employees and announced plans to reduce expenses by $2 billion.
What is the CVS controversy?
The government alleges that by knowingly filling unlawful prescriptions for controlled substances, CVS violated the CSA and, where CVS sought reimbursement from federal healthcare programs, also violated the FCA. The complaint alleges that CVS's actions helped to fuel the opioid crisis.
What is the best pharmacy to use?
Good Neighbor Pharmacy ranks highest among brick-and-mortar chain drug store pharmacies for an eighth consecutive year, with a score of 775. Good Neighbor received top scores in all study dimensions, including "level of trust with pharmacy." Health Mart (729) ranks second and Rite Aid Pharmacy ranks third (650).
Why did CVS crash?
Hynes said the problem appeared to be that CVS "over-diversified" its Medicare Advantage plan selection and over-extended its benefits. UnitedHealth's stock has also had a pretty bad month.
What is going on with CVS?
Tim Wentworth took over as CEO about 15 months ago and has already cut the company's dividend, announced plans to shut down 1,200 stores, and is looking at wide range of options, including selling assets.
Is Family Dollar going out of business?
Family Dollar Is Closing 600 Stores in 2024 (Is Yours One of Them?) The brand expects to close an additional 370 stores in 2025 and beyond. This article was subjected to a comprehensive fact-checking process.
Why is CVS pulling out of Target?
The closures are part of CVS's efforts to pare down its retail footprint “based on our evaluation of changes in population, consumer buying patterns and future health needs,” she said. CVS has operated pharmacies inside Target stores since 2015, when it bought the business from the retailer for around $1.9 billion.
Why are CVS locations closing?
CVS spokesperson Amy Thibault told USA Today that the closures are caused by changes in population and consumer buying patterns.
What is causing drug stores to close?
Reasons for closures also vary by location, with some chains closing due to lack of sales or theft and safety concerns, and others 'rightsizing' their store count. “In more densely populated areas, pharmacies are making those [rightsizing] decisions,” said Ian Schroeder, senior VP at CBRE.
What is the biggest problem in pharmacy today?
- New Regulations in 2024.
- Getting Back to Basics.
- Financial Recovery.
- Work-Related Burnout & Stress.
- Drug Pricing and Shortages.
- Telehealth.
- Technology & Automation.
- Cybersecurity.
Is Walmart shutting down in 2024?
Walmart is shuttering 11 US locations in 2024. See the list. Walmart has announced closures for 11 locations across six states in 2024 so far.
Is Target closing stores in 2025?
Target is no stranger to adjusting its store footprint, and in 2025, it plans to close a few underperforming locations. The company has been shifting its focus to digital sales, but some brick-and-mortar stores just haven't kept up.
Are Walgreens stores closing?
Walgreens announced it will close 1,200 stores over the next three years, with 500 closures set for fiscal year 2025, set to end in August. CEO Tim Wentworth emphasized the need to address underperforming locations, as about 25 percent of Walgreens stores are unprofitable.
What is the new name for Walgreens?
Walgreens Specialty Pharmacy and Walgreens Mail Service will be the new names for AllianceRx Walgreens Pharmacy and Walgreens community-based specialty pharmacies, effective August 1, 2024.
Why are Walgreens and CVS in trouble?
"Walgreens and CVS have been on a massive expansionary push," Neil Saunders, a managing director at the retail consultancy GlobalData, said. "They've just opened stores willy-nilly, and they've ended up with portfolios that are too big. There's too much overlap."
What pharmacy chain is closing?
In an aerial view, a customer leaves a Walgreens store on January 04, 2024 in San Pablo, California. CVS is closing 900 stores. Rite-Aid is closing 500. Walgreens announced Tuesday it plans to close 1,200 stores, meaning 1 in 7 will disappear.