CVS Pharmacy has announced plans to open a new kind of store in parts of the U.S.
The pharmacy chain said it will open "smaller format" locations in select communities within the next year.
The new stores will be less than 5,000 square feet and will offer "a full-service pharmacy with limited over-the-counter products available for purchase," according to a statement from the company. The stores will aim to "make it easier for patients to access medications, immunizations, and other pharmacist-provided health care services," CVS said.
The plan includes "a dozen or more" locations "in select neighborhoods," though no specifics on where the stores will open were immediately released.
"By taking a customized approach to our footprint that is focused on the specific needs of the communities we serve, we’re continuing to strategically realign our pharmacy footprint to better support patient and ensure the right geographic coverage," a spokesperson for CVS said in a statement.
In addition to the small-format stores, CVS said it also plans to continue opening traditional locations, with at least 30 more set for 2025, including some inside Target stores.
CVS Health Corp. runs one of the nation’s largest drugstore chains and a huge pharmacy benefit management business that operates prescription drug coverage for employers, insurers and other big clients. It also covers nearly 27 million people through its Aetna insurance arm.
The health care giant has been hurt by pressure from the Medicaid coverage it manages in several states as well as rising costs from its Medicare Advantage business, which involves privately run versions of the federal government’s coverage program mainly for people age 65 and older.
On the drugstore side, CVS Health is wrapping up a multi-year plan that includes the closure of more than 1,100 stores.
CVS Health is trying to move past a rough 2024 in which the company cut its forecast several times and saw its stock price tumble about 43%.
Former CEO Karen Lynch stepped down last October and was replaced by company executive David Joyner.
The new store announcements come as fellow pharmacy chain Walgreens said it plans to close more than 1,000 "underperforming stores" by 2027.
Walgreens most recently agreed to be acquired by a private equity firm.
