Over the next year, CVS will open a dozen small-format stores in locations throughout the U.S. that will include full-service pharmacies but very limited selections of non-healthcare retail, according to the Wall Street Journal. The stores will average less than 5,000 square feet — not even half as large as a typical CVS store.
These stores will stock health-related products such as first aid and over-the-counter cough and pain medications but none of the groceries, cosmetics and greeting cards that have become typical elements of drugstore retail.
Along with other retailers in this vertical, CVS has been struggling to keep costs in check while facing stiff competition — not just from other pharmacy retailers but also by convenience stores, beauty retailers and online players. In August 2024 CVS unveiled a multi-year plan to save $2 billion by streamlining and optimizing operations and accelerating its use of AI. The retailer had cut 5,000 jobs in August 2023 as it sought to sharpen its focus on healthcare services.
Competitor Walgreens, which is going private following a recent $10 billion acquisition by Sycamore Partners, also has been trying to right-size its store fleet. In October 2024 the retailer announced plans to shutter 1,200 stores over the next three years,
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