CVS Health Corp. said it will close 300 stores a year over the next three years and take a charge of as much as $1.2 billion, part of a plan to decrease its store density in some areas.
The reduction represents about 9% of CVS’s current 9,900-store footprint. As part of a strategic review, the pharmacy chain will create three new store formats designed to increase interaction with customers, CVS said in a statement. Part of the goal is to balance the types of stores needed in different locations, including ones that offer primary-care services.
Executive changes will accompany the moves. Neela Montgomery, executive VP of retail and pharmacy, will leave the company at the end of 2021, CVS said. She joined the Woonsocket, Rhode Island-based pharmacy chain just a year ago after leading furniture retailer Crate & Barrel.
Prem Shah was named to a new role as chief pharmacy officer and as of Jan. 1 will become co-president with Michelle Peluso of CVS Health’s retail business.