CVS is shifting its retail strategy by introducing a dozen smaller-format stores in 2025, focusing solely on pharmacy services. These new locations, about half the size of traditional CVS stores, will eliminate the retail section that typically sells snacks, greeting cards, and other consumer goods.
This move is part of CVS’s broader transformation efforts, which have included closing over 1,000 stores and reducing its workforce. The company is responding to industry challenges, including competition from major retailers like Amazon and Target, as well as rising concerns over retail theft.
The new format will still offer a full-service pharmacy and select over-the-counter products, tailored to meet local community needs. A CVS spokesperson emphasized that this shift is designed to “strategically realign our pharmacy footprint to better support patients.”
CVS’s changes reflect wider disruptions in the pharmacy industry. Walgreens recently announced a major restructuring, including store closures and a $24 billion private equity buyout, while Rite Aid has shuttered hundreds of locations after exiting bankruptcy.
As CVS bets on a pharmacy-centric model, it remains to be seen how this strategy will help the company compete in an increasingly digital and competitive market.
