Introduction
As one of the largest retail pharmacy chains in the United States, CVS is a familiar sight to many Americans. But for some CVS customers, 2022 will mean saying goodbye to their local store. In this article, we will provide a comprehensive list of all CVS stores closing in 2022, analyze the reasons behind the closures, compare this year’s numbers with previous years, and discuss the impact on the surrounding communities and employees. We will also explore larger trends in the retail industry and consumer behavior that may be contributing to these closures.
List of CVS Stores Closing in 2022
According to a press release from CVS Health in August of 2021, 22 CVS stores will be closing in 2022. Here is a breakdown of the closures:
- Alabama: 1 store (scheduled to close on March 31, 2022)
- California: 6 stores (scheduled to close on March 31, 2022)
- Connecticut: 2 stores (scheduled to close on March 31, 2022)
- Florida: 2 stores (1 scheduled to close on January 31, 2022, and the other on March 31, 2022)
- Massachusetts: 2 stores (both scheduled to close on March 31, 2022)
- Maryland: 1 store (scheduled to close on January 31, 2022)
- Michigan: 1 store (scheduled to close on January 31, 2022)
- North Carolina: 1 store (scheduled to close on January 31, 2022)
- New Hampshire: 1 store (scheduled to close on March 31, 2022)
- New York: 2 stores (both scheduled to close on March 31, 2022)
- Ohio: 2 stores (both scheduled to close on January 31, 2022)
- Oregon: 1 store (scheduled to close on March 31, 2022)
Reasons Behind the Closure of CVS Stores
There are several reasons why CVS has decided to close these stores. In the press release, CVS Health cited “underperforming retail locations” as the main reason for the closures. This means that the stores are not generating enough sales to justify keeping them open. CVS has also stated that the closures are part of a larger strategy to focus on their core business areas, such as healthcare services and digital offerings.
The impact of store closures on surrounding communities can be significant. CVS stores often serve as a convenient location for people to fill their prescriptions or purchase over-the-counter medications. Losing a nearby CVS store can mean having to travel farther to get the same products and services. This can be particularly difficult for elderly or disabled customers who may struggle with transportation.
Comparison with Previous Years and Future Trends
The number of stores closing in 2022 is actually lower than in previous years. In 2020, CVS closed 46 stores, and in 2019, they closed 22 stores. However, it remains to be seen whether this trend will continue in the future. Some analysts predict that brick-and-mortar stores will continue to struggle as more consumers shift their shopping habits online.
There are several possible reasons for store closures in general. One factor is changing consumer behavior. As more people turn to online shopping for their everyday needs, traditional brick-and-mortar stores may be left with declining sales. Additionally, the rise of competition from online pharmacies and other retailers could be contributing to the decline in sales at CVS stores.
Financial Implications for CVS
While store closures can be difficult for the surrounding communities, they can provide financial benefits for the parent company. Closing underperforming stores can lead to cost savings for the company, as they do not have to continue paying rent and utilities for a location that is not making money. However, store closures also mean job losses for employees. CVS is offering transfer opportunities to eligible employees to other nearby CVS locations wherever possible.
Retail Industry Trends and Consumer Behavior
The trend of store closures at CVS may reflect larger trends in the retail industry. As more consumers shift their shopping habits online, traditional brick-and-mortar stores are struggling to compete. This shift has been particularly pronounced in the healthcare industry, as telehealth services and home delivery of medications become more popular. Additionally, the rise of online pharmacies and direct-to-consumer healthcare products has given consumers more options than ever before.
Benefits and Drawbacks of CVS’s Decision
The closure of underperforming stores can be beneficial for CVS as a company, as it can lead to cost savings and a more focused business strategy. However, the impact on local communities and employees cannot be ignored. For those who rely on their local CVS store for prescription medications and other healthcare products, losing that store can be a significant inconvenience. Additionally, employees who work at closed stores may face job losses or be forced to transfer to other locations.
Conclusion
Closing underperforming stores is a difficult decision for any company, but it’s one that CVS has decided to make in order to focus on its core business areas. While the closure of these stores may have some negative impacts on surrounding communities and employees, it is important to remember that CVS is a business and must make strategic decisions in order to remain competitive. It remains to be seen whether store closures will continue to be a trend in the retail industry, but for now, those affected by the closures in 2022 will need to adjust to the change.