CVS to close 22 drugstores next year

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CVS Health will close 22 “underperforming” drugstores early next year, the company
says in a regulatory filing.

The company shuttered 46 drugstores earlier this year.

Rival Walgreens is closing 200 stores.

CVS Health will close 22 “underperforming” drugstores early next year in addition to the 46 stores it shuttered earlier this year, the company said Wednesday in a regulatory filing.

The locations weren’t disclosed. The company recorded a $96 million impairment charge on its third-quarter earnings related to the 22 stores. It recorded a $135 million charge in the first quarter due to the 46 stores it closed during the second quarter.

“We believe these decisions will generate enhanced longer-term performance,” Chief Financial Officer Eva Boratto told analysts Wednesday on a call reviewing third-quarter results. “Our real estate footprint remained very productive, and we will look for opportunities to further improve the performance in our portfolio.”

Drugstores are under threat as consumers buy more pharmacy items online and new competitors sell prescription drugs online. For example, Costco and Instacart announced a plan Wednesday to test free one-hour prescription deliveries in California and Washington state.

Walgreens earlier this year said plans to close 200 stores. Amid upheaval in the industry, CVS executives have said they do not expect “meaningful” store closures.

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Godwin Okafor is a Financial Journalist, Internet Social Entrepreneur and Founder of Naija247news Media Limited. He has over 16 years experience in financial journalism. His experience cuts across traditional and digital media. He started his journalism career at Business Day, Nigeria and founded Naija247news Media in 2010. Godwin holds a Bachelors degree in Industrial Relations and Personnel Management from the Lagos State University, Ojo, Lagos. He is an alumni of Lagos Business School and a Fellow of the University of Pennsylvania (Wharton Seminar for Business Journalists). Over the years, he has won a number of journalism awards. Godwin is the chairman of Emmerich Resources Limited, the publisher of Naija247news.

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