CVS Health plans to open small stores that eliminate many of the items that are currently found on the shelves of drug store chains.
The retail pharmacy and health care giant plans to unveil a small-store format that offers a full range of pharmacy services, over-the-counter medications and other health-related items, but with limited retail options, reported The Wall Street Journal. The stores will span an average of less than 5,000sq ft and will not include merchandise such as greeting cards and groceries.
CVS plans to open 12 of the new format stores over the next year, according to the Journal report, focusing on areas where customers have limited options to fill their prescriptions or obtain vaccines.
The move comes as the retail drug store industry has faced a number of challenges in recent years, including low reimbursement rates for filing prescriptions, increased online competition and softer discretionary spending. In late 2021, CVS announced plans to close approximately 300 stores annually during the next three years “to reduce store density in certain locations”.
