No, CVS is not going out of business in 2024 in the USA. While CVS has been undertaking a strategic store optimization plan that includes closures, this is part of a broader business strategy and does not indicate the company is failing or withdrawing from the market.
CVS Store Optimization Strategy
CVS Health, a leading healthcare company, is actively evolving its retail footprint to better serve community needs and integrate its various health services. This strategic shift involves closing underperforming or redundant locations to focus on a more modern store format that often includes enhanced health services.
Planned Closures for 2024
For 2024, CVS plans to close approximately 300 stores across the United States. These closures are a continuation of a multi-year strategy announced earlier, which aims to optimize its retail portfolio. The affected locations include both standalone CVS pharmacies and some of their in-store locations within Target stores.
Historical Context of Closures
This recent wave of closures is not an isolated event. Since 2022, CVS has already closed roughly 600 stores. When combined with the 300 planned for 2024, the total number of permanent closures reaches approximately 900 stores.
| Period | Number of Stores Closed | Total Holdings Represented |
|---|---|---|
| Since 2022 | ~600 | |
| Planned 2024 | ~300 | |
| Total | ~900 | ~10% of total holdings |
This figure, while substantial, represents about 10 percent of CVS's total store holdings nationwide. The vast majority of CVS pharmacies will continue to operate, offering pharmacy services, health products, and essential retail items to communities across the country.
Why the Closures?
The closures are part of a strategic effort to ensure CVS stores are in the right locations, offering the right services, and operating efficiently. This can involve:
- Addressing Redundancy: Closing stores in close proximity to others.
- Focusing on Profitability: Shuttering underperforming locations.
- Adapting to Consumer Behavior: Shifting resources to digital platforms or more integrated health hubs.
- Modernizing Store Formats: Investing in locations that can offer a wider range of health services, like MinuteClinic and HealthHUBs.
These actions are typical for large retail chains seeking to adapt to changing market conditions and consumer preferences, rather than a precursor to going out of business. CVS remains a significant player in the U.S. healthcare and retail pharmacy landscape, with thousands of stores still in operation and continued investment in its core business and healthcare services.
For more information on these closures, you can refer to reports from reputable sources such as Time Out.
