FILE PHOTO: Illustration shows CVS Health logo
(Reuters) – CVS Health said on Thursday it will close some pharmacies that operate inside Target stores during the first several months of the year.
The closures will begin in February and be completed by the end of April, a company spokesperson said. Prescriptions will be transferred to a nearby CVS Pharmacy prior to closing, the spokesperson added.
U.S. pharmacy chains including rival Walgreens Boots Alliance have been implementing cost cuts in an effort to tackle decreased spending by inflation-weary consumers and intense competition.
The pharmacy closures are “based on our evaluation of changes in population, consumer buying patterns and future health needs,” CVS said.
The spokesperson declined to comment on locations impacted by the move, but said the employees affected by the closures will be offered comparable roles within the company.
CVS in 2015 bought Target’s pharmacies and clinics in a $1.9 billion deal adding about 1,660 pharmacies in the process.
The healthcare conglomerate, which now operates more than 9,000 retail pharmacies in the United States, also includes one of the largest U.S. pharmacy benefit managers and the Aetna health insurer.
(Reporting by Mariam Sunny in Bengaluru; Editing by Shweta Agarwal and Maju Samuel)
