CVS Health is undertaking a significant strategic realignment of its retail footprint, with plans to close hundreds more stores across the United States. This ongoing initiative, first announced in November 2021, aims to optimize its extensive network of pharmacies and adapt to profound shifts in consumer behavior and healthcare delivery. The company confirms that 270 additional stores are slated for closure in 2025, building upon approximately 900 locations shuttered between 2022 and 2024.
This broad restructuring is designed to reduce store density and strategically position its existing stores and pharmacies to better meet evolving consumer needs. A CVS spokesperson articulated that the effort to pare down has been made “based on [the company’s] evaluation of changes in population, consumer buying patterns and future health needs.” This indicates a proactive, rather than reactive, approach to market dynamics.
Indeed, CVS leadership has emphasized that these closures are a “long-planned strategic move, not a reaction to industry pressures.” The initiative is part of an “enterprise-wide restructuring plan intended to streamline and simplify the organization,” according to public statements. Such a comprehensive strategy underscores a commitment to long-term operational efficiency and market relevance.
The rationale behind these decisions is multifaceted, encompassing factors such as population shifts, consumer buying patterns, and the density of existing stores and pharmacies within communities. The company also considers pharmacy care access and specific community health needs when evaluating locations for closure. This analytical framework ensures that adjustments are made with a comprehensive understanding of local market dynamics.
In California, for instance, dozens of CVS locations are shutting down in 2025, primarily due to the state’s high operating costs and rapid adoption of digital health services. The region’s elevated real estate costs and urban saturation, particularly in major markets like San Francisco and Los Angeles, have prompted the company to reduce redundancy. This strategic consolidation allows CVS to mitigate high retail lease prices and operational expenses.
Declining in-store traffic is another significant driver for these closures, observed in various shuttered stores across locations such as San Jose, Murrieta, and Azusa. California’s increasing preference for digital-first solutions, including curbside pickup and mail-order delivery, has rendered some traditional physical locations less essential. This shift reflects a broader national trend in consumer shopping habits.
The expansion of digital health services has fundamentally altered how patients interact with pharmacies. With widespread adoption of telehealth and digital pharmacy tools, more patients are opting for online refills, mail delivery, and virtual consultations over traditional in-person visits. This trend is particularly pronounced in tech-savvy regions, influencing the demand for physical store presence.
CVS is simultaneously making a strategic shift away from large-format retail stores towards smaller neighborhood pharmacy models. These new formats are designed to integrate more organically into communities, offering easier access to essential services like vaccinations, pharmacist consultations, and medication dispensing. This pivot reflects an agile response to evolving community expectations and healthcare delivery preferences.
Further demonstrating this strategic evolution, many California stores being closed are making way for newer builds that incorporate CVS’s HealthHub format or MinuteClinic services. These models prioritize wellness and chronic care management, catering to areas with aging populations or existing underserved healthcare infrastructures. This investment aligns with a broader industry move towards integrated health services.
Consumer behavior post-pandemic has also solidified the trend towards digital and delivery services. Californians, like many across the U.S., are shopping less frequently in-store and relying more heavily on digital pharmacy tools and delivery options. CVS leadership has explicitly stated that the company’s strategy is to meet consumers “where they are”—which increasingly means online channels.
This transformation extends beyond physical locations to encompass a broader enterprise-wide restructuring plan. The company has also cut approximately 5,000 jobs within the last year, a move reported by The Wall Street Journal. These job reductions reflect efforts to streamline and simplify the organization in response to the changing operational landscape and strategic realignment.
Despite the substantial number of closures, CVS is not entirely halting new store development. The company opened 100 new stores between 2022 and 2024, demonstrating a dual strategy of consolidation and targeted expansion. For 2025, CVS plans to open nearly 30 new CVS Pharmacy locations, including some situated inside Target stores, in areas identified as having significant need.
These new openings underscore a commitment to maintaining broad accessibility. Even after this comprehensive realignment, CVS asserts that 85% of Americans will still live within 10 miles of a CVS Pharmacy. This metric is a key aspect of their communication, aiming to reassure the public about continued access to vital pharmacy services.
For communities directly affected by closures, CVS has established protocols to minimize disruption. Prescriptions from closing stores are typically transferred to a nearby CVS Pharmacy to ensure uninterrupted access to care. For example, a Louisville, Kentucky, location at 416 E Broadway is scheduled to close on December 17, with prescriptions transferred to a site 1.1 miles away.
Similarly, the CVS Pharmacy at 778 Dudley Street in Uphams Corner, Massachusetts, will close on December 18, with prescriptions moving to a Grove Hall location. Employees impacted by closures are reportedly offered comparable roles within the company, indicating an effort to retain talent amidst the restructuring.
CVS continues to serve customers through various integrated channels. Many CVS Pharmacies located within Target stores will remain operational, leveraging established retail partnerships. Additionally, customers can utilize CVS’s robust online platform for prescription refills and other services, which has seen increased adoption.
MinuteClinic walk-in medical clinics, situated within select CVS stores, also offer accessible healthcare services. These clinics represent a critical component of CVS’s evolving strategy to provide immediate care and expand its role beyond traditional prescription dispensing, focusing on broader health and wellness.
The strategic adjustments at CVS are reflective of wider industry contraction among major drugstore chains. Both Walgreens and Rite Aid have also initiated significant efforts to reduce their retail presence as consumer shopping habits increasingly favor online alternatives over in-person visits. This signals a fundamental transformation across the entire retail pharmacy sector.
Rite Aid, for instance, filed for bankruptcy in July 2024 and subsequently closed nearly 74 stores last year. Walgreens CEO Tim Wentworth also announced earlier this year that his company is set to close a slew of underperforming stores by the end of 2027. These parallel actions illustrate a collective industry response to shared market pressures.
Beyond its core pharmacy business, CVS Health is also adjusting its footprint within its Oak Street Health clinic network, which it acquired in 2023. The company has announced plans to close 16 of these clinics by the end of February 2026, amid rising cost pressures. The Oak Street network focuses on providing healthcare services to older adults.
CVS Health leaders cited “elevated medical costs, CMS [Centers for Medicare & Medicaid Services] risk adjustment model changes and health plan payer dynamics” as reasons for these specific clinic closures. Despite these adjustments, the company maintains its belief in Oak Street Health’s proven care model to deliver positive clinical outcomes for patients. Following these closures, 230 centers will continue to operate across 27 states.
In instances where physical pharmacies are closing, customers are exploring alternative options for obtaining medications. Planet Drugs Direct, a CIPA-certified international pharmacy, offers significant savings, reportedly up to 80% off U.S. retail prices, making it a viable choice for uninsured individuals or those managing long-term conditions. It ships large quantities and is available nationwide.
Other notable alternatives include Amazon Pharmacy, which offers a wide selection of drugs with Prime discounts and insurance integration, and PillPack by Amazon, which sorts medications by day and time for chronic care patients. CVS Pharmacy also offers its own online refills and delivery services, providing continuity for existing customers.
Optum Rx caters to employer or Medicare-linked plans with home delivery of maintenance and specialty drugs. For specific conditions, telehealth platforms like Hims and Hers, Lemonaid Health, and Nurx provide virtual consultations and prescriptions. GoodRx offers drug price comparisons and coupons for both local and online pharmacies, assisting cash payers in finding the best deals.
This broad range of services, both from CVS and its competitors, illustrates the evolving ecosystem of medication access. The strategic closures by CVS Health are not merely reductions but represent a sophisticated recalibration designed to navigate the complexities of modern healthcare and retail. They reflect a commitment to a more agile, digitally integrated future, aiming to deliver health, wellness, and pharmacy care more efficiently.
The ongoing realignment signifies a profound strategic pivot for CVS Health, emphasizing efficiency, technological integration, and a refined physical presence. By concurrently closing underperforming locations and investing in targeted new stores and advanced care models, the company endeavors to fortify its position within a dynamically changing industry. This transformation seeks to create a more resilient and responsive healthcare enterprise for years to come.
CVS’s leadership continues to underscore its focus on ensuring “the right kinds of stores and the right number of stores in the right locations.” This proactive recalibration is designed to meet consumers’ health, wellness, and pharmacy care needs through a blend of physical presence and digital innovation. The restructuring positions CVS for sustainable, long-term growth by aligning its operations with contemporary market demands and consumer preferences.
