business news in context, analysis with attitude

Drugstore chain CVS said yesterday that it plans to close 46 “underperforming” stores in Alabama, Arizona, California, Delaware, Florida, Hawaii, Illinois, New York, Michigan, Minnesota, Missouri, New Mexico, Texas, and Washington, DC.

The move comes as CVS CEO Larry Merlo has said that the company’s long-term plan is to reduce the amount of space devoted to straight retail in its stores and increase the space dedicated to health care services, such as its new focus on teeth alignment with SmileDirectClub shops.

USA Today notes that “CVS remains a solidly profitable business. The company expects to record an operating profit of between $11.8 billion and $12 billion this year.” However, “drugstore chains have not been immune to upheaval roiling the retail industry and the health care sector. CVS is bracing for the likelihood of Amazon's entry into prescription drugs after the online giant acquired startup PillPack.”
KC's View:
An example of how retailers with their eyes fixed firmly on the future have to be more than a source of product, but also a resource for consumers. (Where have I heard that before?)