CVS Health is looking to streamline its business and overhaul its shopping experience with the closure of nearly 300 stores a year for the next three years and develop new store formats that will deliver a more engaging experience to shoppers.
The new store formats will extend unique healthcare offerings such as primary care services, and an enhanced version of HealthHUB locations, in addition to prescription services and health, wellness and personal care products.
“Our retail stores are fundamental to our strategy and who we are as a company,” said Karen S. Lynch, president and CEO of CVS Health. “We remain focused on the competitive advantage provided by our presence in thousands of communities across the country, which complements our rapidly expanding digital presence.”
In addition to closing nearly 900 retail locations, the retailer has appointed Prem Shah, who has been serving as the company’s executive vice president of specialty pharmacy and product innovation, to a newly created role of chief pharmacy officer. Starting January 2022, Shah will oversee the company’s omnichannel pharmacy strategy.
Shah and Michelle Peluso will become co-presidents of CVS Health’s retail business, with Peluso overseeing front-store strategy and operations. Peluso joined CVS Health in 2021 as executive vice president and chief customer officer.
“Prem and Michelle are ideally suited for their new roles and will be instrumental to CVS Health as we continue to execute against our strategy of delivering an integrated health care experience centered around the consumer,” said Lynch.
CVS also announced that Neela Montgomery, who is currently executive vice president and president of CVS retail/pharmacy, will leave the company by the end of 2021.
The company will begin reducing its store density in certain locations starting in the spring of 2022.