CVS to Close 270 Stores in 2025 as Part of Strategic Realignment

WOONSOCKET, R.I. — CVS Health, the largest retail pharmacy chain in the United States with over 9,000 locations, has announced plans to close 270 stores nationwide in 2025, continuing a multi-year restructuring effort to optimize its retail footprint. The closures, confirmed in the company’s February 2025 financial filings, are part of a strategic initiative launched in November 2021 to streamline operations, reduce store density, and better align with evolving consumer needs.

According to a CVS spokesperson, the decision to shutter these locations is driven by factors such as population shifts, consumer buying patterns, store and pharmacy density, and community health needs, rather than external industry pressures. “We’re focused on ensuring we have the right kinds of stores and the right number of stores in the right locations,” the spokesperson told Newsweek. The company emphasized that 85% of Americans will still live within 10 miles of a CVS Pharmacy post-closures, maintaining broad accessibility.

This latest wave follows the closure of approximately 900 stores between 2022 and 2024, during which CVS also opened 100 new locations. In 2025, the company plans to open 30 additional stores, including some within Target locations, to serve high-demand areas. The closures target underperforming stores or those in areas with overlapping locations and low foot traffic, with specific decisions informed by a “strategic review” aimed at improving efficiency and reducing costs.

CVS is also adapting to changing market dynamics by shifting toward smaller, health-focused formats like HealthHUBs, which prioritize services such as chronic disease management, mental health support, and wellness screenings. The company is enhancing its digital platform, offering online prescription services, telehealth consultations, and health record access to bridge gaps caused by physical store closures. Additionally, CVS is integrating pharmacy services into select Target stores to maintain accessibility.

The closures have raised concerns about their impact on communities, particularly in areas where CVS is a primary source of pharmaceuticals and essentials. A Reddit user from the r/CVS community highlighted the challenges for neighborhoods reliant on local stores, noting that many residents, especially seniors without cars, depend on CVS for medications, toiletries, and even groceries. CVS has committed to supporting affected employees by offering transfers to other locations or assistance in finding new roles within the company.

Industry-wide, retail pharmacies are facing similar pressures. Rite Aid plans to close over 300 stores in 2025, while Walgreens aims to shutter 1,200 locations over the next three years, reflecting broader challenges like competition from e-commerce, lower prescription reimbursement rates, and rising operational costs. CVS, however, reported a $1.2 billion charge in its Q3 2024 earnings related to the 2025 closures, underscoring the financial weight of its restructuring.

While CVS has not released a comprehensive list of the 270 locations slated for closure, Newsweek compiled a partial list based on local news reports, identifying stores in states including Alabama, California, Florida, Georgia, Illinois, Massachusetts, New York, Pennsylvania, Texas, and Washington, D.C. The company has also acknowledged crime as a factor in some closures, particularly in D.C., marking a rare admission of external influences.

As CVS navigates this transformation, CEO David Joyner has pledged to address rising healthcare costs, citing “egregious price hikes” by drug manufacturers and a $21 million spike in drug spending in January 2025. The company aims to leverage its Pharmacy Benefit Manager, Caremark, to drive down prescription costs, ensuring “exceptional value” for consumers.

For customers concerned about local store closures, CVS recommends checking store statuses via its website or contacting customer service. The company remains committed to its mission of providing accessible healthcare, even as it reshapes its physical and digital presence to meet modern demands.

17GEN4.com

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