CVS (NYSE:CVS) announced that the company is issuing a round of store closures as a number of its locations have been underperforming.
The Rhode Island-based pharmacy business said it will close down about 46 locations in the U.S. as they are failing to perform to the level the company expects. The move is also part of a broader effort to reduce the number of retail products that the company sells.
With this new effort, CVS plans on adding other health care services to the stores that will remain open, including hundreds of SmileDirect shops, which are geared for customers who are looking to straighten their teeth. The move marks yet another in a growing number of physical stores that are closing down due to to the increasing amount of consumers who choose to shop online.
The company said that 46 stores are part of its closures, which include a location in Springfield, Missouri, which was once named as the largest CVS location in the world. And even though there will be dozens of stores closing down, this amount is still less than 1% of the 9,600 stores the brand is operating across the U.S.
Most locations will still have a CVS location nearby even if the closest one to their home shutters its doors.
CVS stock is down about 0.4% on Friday afternoon following the company’s store closures announcement..
Article printed from InvestorPlace Media, https://investorplace.com/2019/05/cvs-store-closures-stock/.
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