CVS to close 22 drugstores next year – CNBC

CNBC logo

Pedestrians walk by a CVS store on November in San Francisco, California.

Justin Sullivan | Getty Images

CVS Health will close 22 “underperforming” drugstores early next year in addition to the 46 stores it shuttered earlier this year, the company said Wednesday in a regulatory filing.

Details of the locations of the stores weren’t immediately disclosed. The company recorded a $96 million impairment charge on its third-quarter earnings related to the 22 stores. It recorded a $135 million charge in the first quarter related to the 46 stores it closed during the second quarter.

“We believe these decisions will generate enhanced longer term performance,” CVS Chief Financial Officer Eva Boratto told analysts Wednesday on a call reviewing third-quarter results. “Our real estate footprint remained very productive, and we will look for opportunities to further improve the performance in our portfolio.”

Drugstores are under threat as consumers buy more pharmacy items online and new competitors sell prescription drugs online. Rival Walgreens earlier this year said it would close 200 stores. Amid upheaval in the industry, CVS executives have said they do not expect “meaningful” store closures.

Let’s block ads! (Why?)

Source link