CVS Is Closing 300 Stores in 2024 (Even Inside Target) (2024)

FAQs

CVS Is Closing 300 Stores in 2024 (Even Inside Target)? ›

CVS announced in 2022 that it had a goal of closing around 900 locations between 2022 and 2024, with around 300 closures per year. The company has already closed around 600 stores, so it's still on track to close another 300 locations this year to meet its goal.

CVS has announced its plan to reduce its workforce by 5,000 individuals and close approximately 900 stores between 2022 and 2024 (out of which approximately 600 locations closed last year). Employees affected by the closures will be offered equivalent positions elsewhere.

The closures are part of CVS's efforts to pare down its retail footprint “based on our evaluation of changes in population, consumer buying patterns and future health needs,” she said. CVS has operated pharmacies inside Target stores since 2015, when it bought the business from the retailer for around $1.9 billion.

CVS spokesperson Amy Thibault says the closings are "are based on our evaluation of changes in population, consumer buying patterns and future health needs to ensure we have the right pharmacy format in the right locations for patients."

Dive Insight: CVS acquired Target's pharmacy business in 2015. The deal was worth $1.9 billion, The Wall Street Journal reported. The partnership was “a significant shift” in Target's business model, CEO Brian Cornell said in a blog post at that time.

At least 11 retail brands have said they're closing US stores in 2024, totaling up to 1,401 locations. Family Dollar is the largest chain on the list, planning to close at least 600 stores this year. Other companies, such as Walmart and TJX, are closing a few stores while opening many more.

CVS Health is rebranding its health services segment under a new name, “CVS Healthspire,” as the company expands deeper into the provision of medical care. Under CVS chief executive officer Karen S.

March 30, 2023 - CVS has finalized its acquisition of the home healthcare company Signify Health, which aims to accelerate value-based care and improve health outcomes.

Today, CVS has about 1,800 pharmacies inside of Target's 1,950 stores. Overall, CVS has more than 9,000 locations. For Target, CVS pulling out of some of its stores is a blow because CVS became an integral part of the Target visit, Saunders said.

CVS said the decline in earnings was due primarily to weak operating results in the healthcare-benefits segment, "which reflected continued utilization pressure and the unfavorable impact of the company's Medicare Advantage star ratings for the 2024 payment year within the Medicare product line."

Is CVS in financial trouble? ›

CVS Health's likelihood of distress is under 9% at this time. It has tiny risk of undergoing some form of financial trouble in the near future. Probability of bankruptcy shows the probability of financial torment over the next two years of operations under current economic and market conditions.

Walmart closing more stores

The retailer has already closed 11 stores across the United States in 2024 due to a variety of issues, including underperformance.

Vanguard owns the most shares of CVS Health Corp (CVS).

CVS Pharmacy used to be a subsidiary of Melville Corporation, where its full name was initially Consumer Value Stores. Melville changed its name to CVS Corporation in 1996 after Melville sold off many of its nonpharmacy stores. The last of its nondrugstore operations were sold in 1997.

The plaintiffs accused CVS of violating the anti-discrimination provisions of the Affordable Care Act, commonly known as Obamacare. Chen initially dismissed the case, finding that the mail-order drug program did not explicitly target HIV patients.

Key Points. CVS faced higher-than-expected costs in its insurance business. Lower Medicare Advantage reimbursem*nt rates are expected to weigh on its performance. Profits fell sharply and management slashed its guidance.

We estimate CVS Health's Valuation to be $72 per share, reflecting over 20% upside from its current price of $58. Our forecast is based on a 9x P/E multiple for CVS and expected earnings of $7.72 on a per-share and adjusted basis for the full year 2024.

Stock Price Forecast

The 18 analysts with 12-month price forecasts for CVS Health stock have an average target of 74.11, with a low estimate of 59 and a high estimate of 100. The average target predicts an increase of 28.11% from the current stock price of 57.85.

CVS Heath's recent earnings gave investors multiple reasons to feel bearish about the stock. Costs were higher than expected, and the company also reduced its guidance for the year. The selloff has pushed the stock down to a price-to-earnings ratio of less than 10.