CVS is set to open 12 compact-format stores across the US over the next year.
According to the Wall Street Journal, the stores will prioritise pharmacy services while significantly reducing non-healthcare retail offerings.
Each location will occupy less than 5,000 square feet, less than half the size of a traditional CVS store.
These streamlined stores will focus on core health essentials, carrying first aid supplies and over-the-counter medications for pain relief and colds.
However, they will exclude general merchandise such as food, beauty products and greeting cards, which are typically found in drugstores.
Like others in the sector, CVS has been navigating rising costs and growing competition from pharmacies, convenience stores, beauty retailers, and ecommerce platforms.
In August 2024, the company outlined a strategy to cut $2 billion in expenses by leveraging AI, improving operational efficiency, and restructuring its business.
This followed a significant workforce reduction in 2023, when CVS eliminated 5,000 positions to strengthen its focus on healthcare services.
Meanwhile, rival health retailer Walgreens has also been reevaluating its footprint.
The company, which is transitioning to private ownership following a $10 billion buyout by Sycamore Partners, revealed in October 2024 that it plans to close 1,200 locations over the next three years as part of its restructuring efforts.
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