Home https://server7.kproxy.com/servlet/redirect.srv/sruj/smyrwpoii/p2/ Business https://server7.kproxy.com/servlet/redirect.srv/sruj/smyrwpoii/p2/ CVS Health will close 22 drugstores next year

CVS Health will close 22 drugstores next year



Pedestrians stroll to the CVS store in November in San Francisco, California.

Justin Sullivan | Getty Images

CVS Health will close 22 "bad faith" drugstores early next year, in addition to the 46 stores it closed earlier this year, the company said in a regulatory filing Wednesday.

The locations were not disclosed. The company recorded a $ 96 million impairment charge for its third quarter earnings related to the 22 stores. It registered a $ 1

35 million fee in the first quarter because of the 46 stores that closed in the second quarter.

"We believe these decisions will lead to better long-term results," Chief Financial Officer Eva Boratto told analysts Wednesday during a third-quarter review of the results. "Our real estate footprint has remained very productive and we will look for opportunities to further improve performance in our portfolio."

Pharmacies are at risk as consumers buy more pharmacy products online and new competitors sell prescription drugs online. For example, Costco and Instacart announced a plan Wednesday to test non-hourly, one-time prescription deliveries in California and Washington.

Walgreens earlier this year said they planned to close 200 stores. In the wake of the industry crash, CVS executives said they did not expect "meaningful" store closures.


Source link