New York ( Business)CVS" notice Thursday the it will close 900 stores over the following three years — roughly 10% that its pharmacies — might have recorded some shoppers off guard.

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Isn"t CVS doing yes, really well best now? Haven"t too many of people gone to drug stores throughout the pandemic to share up top top hand sanitizer, cleaning wipes and toilet paper? What about all those Covid-19 vaccine shots CVS offers out?



Online pharmacies and also telemedicine have acquired traction, too. Amazon purchase PillPack in 2018 for more than $700 million and also started shipping prescriptions to prime members last year. Capsule and also other digital pharmacies that supply directly to customers" residences are likewise growing.
Although brick-and-mortar pharmacies space still critical stop for countless elderly people,or those who don"t usage the net or have accessibility to it, they room increasingly coming to be a thing of the past to the cultivation ranks of online shoppers.
Closing stores likewise reduces CVS" expenses while still keeping most the its sales. The labor and also store operations expenses increased during the pandemic because of security protections choose plexiglass, floor decals and also masks. The agency said in respectable it planned to raise the minimum wage to $15 an hour indigenous $11 in a bid to retain and attract workers.
Seventy-five percent that CVS" sales originates from filling prescriptions, but its revenues from the segment have declined in recent years because of lower reimbursement rates.
But when CVS close the door a store, it have the right to hold onto many of those sales by changing the prescriptions to its nearest pharmacies, Hill said.
CVS obtained a elevator from people coming right into its stores for your Covid-19 vaccines and also tests. The company has administered 43 million vaccines and also around 38 million tests, CEO Karen Lynch claimed on one earnings speak to earlier this month.
But the vaccines were just a short-term obtain for the company, which claimed they will certainly generate just $3 exchange rate in revenue in 2021. That will decline by up to 40% next year, together with whatever sales CVS racked up as shoppers browsed aisles while they waited to gain vaccinated, Lynch said.

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People likewise visited their physicians less typically last year and also into 2021, and also elective procedures were suspended early on in the pandemic, which expected that CVS filled under regular and chronic treatment prescriptions than in the years before the pandemic.
And fewer people have likewise been coming into stores to choose up cough and fever drugs — huge business because that CVS — since they"re tho wearing masks and spending much more time at house than they as soon as did.