CVS is planning to open 12 new mini-stores across the U.S. by the end of 2025, significantly reducing store size to focus on pharmacy services and healthcare products. These new locations, expected to be around 5,000 square feet, will not stock typical CVS merchandise like skincare and snacks but will emphasize over-the-counter medications. This strategy is a response to shifting consumer behavior and increasing competition from large retailers, as 78.9% of CVS's revenue now comes from pharmacy sales, a trend that reflects broader changes in the retail market.
CVS is significantly reducing the size of its stores, focusing on pharmacy services and healthcare products to enhance profitability amid competitive retail challenges.
Julie Utterback noted that CVS generates most of its value from pharmacy sales, with 80% of revenue coming from this division, validating the shift in strategy.
The mini-stores, at about 5,000 square feet, will exclude traditional merchandise like shampoo and snacks, addressing changing consumer habits and competition.
CVS's latest earnings indicate a 4.2% growth, particularly benefiting from its pharmacy business while traditional front store sales decline, reflecting broader retail shifts.
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