CVS Shifting To Digital Strategy, Will Close 900 Stores Over Next Three Years

[kevinb1994]

https://www.cnbc.com/2021/11/18/cvs-store-closures-to-shut-about-300-stores-a-year-over-next-three-years.html

That's roughly 300 stores a year starting next year, according to the article.

As a long-time (and former, as I now use Walgreens) customer, I'm not really that surprised.

[7/8]

The cost of receipt paper was hurting their bottom line .

[LM117]

https://www.cnbc.com/2021/11/18/cvs-store-closures-to-shut-about-300-stores-a-year-over-next-three-years.html

That's roughly 300 stores a year starting next year, according to the article.

As a long-time (and former, as I now use Walgreens) customer, I'm not really that surprised.

Me either. We've never had good experiences with them, so I say good riddance. We switched over to Walmart pharmacy a few years ago and haven't looked back.

[kevinb1994]

https://www.cnbc.com/2021/11/18/cvs-store-closures-to-shut-about-300-stores-a-year-over-next-three-years.html

That's roughly 300 stores a year starting next year, according to the article.

As a long-time (and former, as I now use Walgreens) customer, I'm not really that surprised.

Me either. We've never had good experiences with them, so I say good riddance. We switched over to Walmart pharmacy a few years ago and haven't looked back.

I've used Costco's pharmacy. It was temporary, though, for reasons I will refrain from posting about here on this forum.

OTOH, our pupper has her prescriptions filled at Costco. They're not open on Sundays, however.

[Road Hog]

CVS does my scrips online. I get them in the mail in about 3 days. My insurance made me switch to them earlier this year, but so far I haven't been inconvenienced.

I've been inside a physical CVS exactly once this year, and that was to pick up some manila folders.

[NWI_Irish96]

Hopefully the closures will not disproportionately impact impoverished areas, which is what tends to happen when chains start closing stores..

[Rothman]

Better get my flu shot now.

[Scott5114]

I've never used CVS for the actual pharmacy, just as a quick stop for a few items when I don't feel like going through the hassle of dealing with Walmart, or all the way across town to the actual grocery store. They stopped being very useful for this when they stopped being 24 hours a few years before the pandemic, though.

[SP Cook]

Actual pharmacy products easily divide into two parts.  First are "maintenance drugs".  Which can easily be shifted to the internet, AKA mail order.  And drugs you are prescribed when you are sick, which are the most internet proof thing in the world.  If you have a fever, you are not waiting around for the mail to show in a 3 or 4 days. 

As to the rest of the store, there is a great urban / suburban divide among chain drug stores.  In city cores, chain drug stores tend to be more general stores and aimed a poor people without transportation.  As such, the profit must be huge.  In the suburbs, chain drug stores tend to be more places that are a combination of a very light sundry store and selling non-prescription health items. 

[jp the roadgeek]

Hopefully the closures will not disproportionately impact impoverished areas, which is what tends to happen when chains start closing stores..

It'll most likely affect areas where shoplifting has become a problem.

[NWI_Irish96]

Hopefully the closures will not disproportionately impact impoverished areas, which is what tends to happen when chains start closing stores..

It'll most likely affect areas where shoplifting has become a problem.

You have data showing that's how chains decide where to close stores or is that just a stereotype you adhere to?

[snowc]

Erwin and Lillington are closing by 2022. 

[Rothman]

Actual pharmacy products easily divide into two parts.  First are "maintenance drugs".  Which can easily be shifted to the internet, AKA mail order.  And drugs you are prescribed when you are sick, which are the most internet proof thing in the world.  If you have a fever, you are not waiting around for the mail to show in a 3 or 4 days. 

As to the rest of the store, there is a great urban / suburban divide among chain drug stores.  In city cores, chain drug stores tend to be more general stores and aimed a poor people without transportation.  As such, the profit must be huge.  In the suburbs, chain drug stores tend to be more places that are a combination of a very light sundry store and selling non-prescription health items.

Duane Reade says hello.

[snowc]

Actual pharmacy products easily divide into two parts.  First are "maintenance drugs".  Which can easily be shifted to the internet, AKA mail order.  And drugs you are prescribed when you are sick, which are the most internet proof thing in the world.  If you have a fever, you are not waiting around for the mail to show in a 3 or 4 days. 

As to the rest of the store, there is a great urban / suburban divide among chain drug stores.  In city cores, chain drug stores tend to be more general stores and aimed a poor people without transportation.  As such, the profit must be huge.  In the suburbs, chain drug stores tend to be more places that are a combination of a very light sundry store and selling non-prescription health items.

Duane Reade says hello.

And Rite Aid says hey back! 

[jp the roadgeek]

Hopefully the closures will not disproportionately impact impoverished areas, which is what tends to happen when chains start closing stores..

It'll most likely affect areas where shoplifting has become a problem.

You have data showing that's how chains decide where to close stores or is that just a stereotype you adhere to?

Look at Walgreens closing a bunch of stores in San Francisco where shoplifting is rampant.  No need to be so vicious.

[Rothman]

Hopefully the closures will not disproportionately impact impoverished areas, which is what tends to happen when chains start closing stores..

It'll most likely affect areas where shoplifting has become a problem.

You have data showing that's how chains decide where to close stores or is that just a stereotype you adhere to?

Look at Walgreens closing a bunch of stores in San Francisco where shoplifting is rampant.  No need to be so vicious.

Hmm...

https://apnews.com/article/business-health-government-and-politics-california-coronavirus-pandemic-d0c6dc49ef4cd6d05f649a860bd72888

[thspfc]

So, cabiness42, if you have an issue with a pharmacy closing stores that are not making much profit due to the impoverished nature of the area they are in, surely you also have an issue with, say, a barbershop that primarily appeals to black men being reluctant to open a location in a majority white neighborhood? Right?

[Scott5114]

So, cabiness42, if you have an issue with a pharmacy closing stores that are not making much profit due to the impoverished nature of the area they are in, surely you also have an issue with, say, a barbershop that primarily appeals to black men being reluctant to open a location in a majority white neighborhood? Right?

That isn't a comparison that makes sense. If a store closes, the number of stores decreases. If a store chooses not to open a location, the number of stores stays the same.

[thspfc]

So, cabiness42, if you have an issue with a pharmacy closing stores that are not making much profit due to the impoverished nature of the area they are in, surely you also have an issue with, say, a barbershop that primarily appeals to black men being reluctant to open a location in a majority white neighborhood? Right?

That isn't a comparison that makes sense. If a store closes, the number of stores decreases. If a store chooses not to open a location, the number of stores stays the same.

That was about how I figured that would go. How do I have to phrase this so that nobody can dance around the question in cowardly fashion?

Try this: there's a barbershop chain with 10 locations in majority black neighborhoods. The chain also has 1 location in a majority white neighborhood. The location in the majority white neighborhood is doing roughly half of the business compared to the per store average of the other 10. Under cabiness42's guidelines, closing the poorly performing location in the white neighborhood would be wrong, correct?

[Scott5114]

So, cabiness42, if you have an issue with a pharmacy closing stores that are not making much profit due to the impoverished nature of the area they are in, surely you also have an issue with, say, a barbershop that primarily appeals to black men being reluctant to open a location in a majority white neighborhood? Right?

That isn't a comparison that makes sense. If a store closes, the number of stores decreases. If a store chooses not to open a location, the number of stores stays the same.

That was about how I figured that would go. How do I have to phrase this so that nobody can dance around the question in cowardly fashion?

Try this: there's a barbershop chain with 10 locations in majority black neighborhoods. The chain also has 1 location in a majority white neighborhood. The location in the majority white neighborhood is doing roughly half of the business compared to the per store average of the other 10. Under cabiness42's guidelines, closing the poorly performing location in the white neighborhood would be wrong, correct?

No, because that's not what the problem is. The actual problem should be obvious.

[thspfc]

So, cabiness42, if you have an issue with a pharmacy closing stores that are not making much profit due to the impoverished nature of the area they are in, surely you also have an issue with, say, a barbershop that primarily appeals to black men being reluctant to open a location in a majority white neighborhood? Right?

That isn't a comparison that makes sense. If a store closes, the number of stores decreases. If a store chooses not to open a location, the number of stores stays the same.

That was about how I figured that would go. How do I have to phrase this so that nobody can dance around the question in cowardly fashion?

Try this: there's a barbershop chain with 10 locations in majority black neighborhoods. The chain also has 1 location in a majority white neighborhood. The location in the majority white neighborhood is doing roughly half of the business compared to the per store average of the other 10. Under cabiness42's guidelines, closing the poorly performing location in the white neighborhood would be wrong, correct?

No, because that's not what the problem is.

I'll take "hilarious non-answers" for 500, Alex.

What is the difference, in the context of morality of closing poorly performing locations, between the CVS situation and the fictional situation that I described?

[kalvado]

So, cabiness42, if you have an issue with a pharmacy closing stores that are not making much profit due to the impoverished nature of the area they are in, surely you also have an issue with, say, a barbershop that primarily appeals to black men being reluctant to open a location in a majority white neighborhood? Right?

Not the best comparison.. There are lot more barbers than pharmacies (actually 2x more barbers than pharmacists per BLS). A remote community is more likely to have a barber, or people can combine haircut with a shopping trip. Having to drive an hour to get an antibiotic when you got sick is a bit more if an inconvenience - and seem to be a growing social issue
https://www.washingtonpost.com/business/2021/11/10/drugstore-shortage-rural-america/

[Scott5114]

I'll take "hilarious non-answers" for 500, Alex.

I'm Scott, not Alex (or Steve, for that matter). But if you insist.

[thspfc]

So, cabiness42, if you have an issue with a pharmacy closing stores that are not making much profit due to the impoverished nature of the area they are in, surely you also have an issue with, say, a barbershop that primarily appeals to black men being reluctant to open a location in a majority white neighborhood? Right?

Not the best comparison.. There are lot more barbers than pharmacies (actually 2x more barbers than pharmacists per BLS). A remote community is more likely to have a barber, or people can combine haircut with a shopping trip. Having to drive an hour to get an antibiotic when you got sick is a bit more if an inconvenience - and seem to be a growing social issue
https://www.washingtonpost.com/business/2021/11/10/drugstore-shortage-rural-america/

So you're arguing that CVS should put stores in rural locations, not near any major population centers (100k+ metro areas), despite the fact that they are unlikely to get as much business in those areas compared to if they were to put stores in more urban locations, where they would get significantly more business?

You are conveniently ignoring the fact that prescriptions can be simply and easily delivered to almost any location - the same cannot be done for the service that a barbershop provides.

[jakeroot]

CVS only has a handful of standalone stores here in the Seattle area. Most are inside Target (pharmacies), but those that are standalone are pretty new. So this news is a little worrying.