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WOONSOCKET, R.I. – CVS Health plans to open over a dozen smaller-format pharmacies across the U.S. over the next year. These stores will be under 5,000 square feet—less than half the size of a typical CVS—and will focus on full-service pharmacy operations with limited retail.
Each location will average under 5,000 square feet, feature a full-service pharmacy with a limited selection of over-the-counter products for purchase, and be designed to meet the specific pharmacy needs of the community.
"We plan to open a dozen or more smaller format CVS Pharmacy locations in select communities nationally over the next year. The new pharmacies will be introduced in select neighborhoods to help bridge gaps in care and make it easier for patients to access medications, immunizations, and other pharmacist-provided health care services," said Amy Thibault, Lead Director of External Communications at CVS Health.
"By taking a customized approach to our footprint that is focused on the specific needs of the communities we serve, we’re continuing to strategically realign our pharmacy footprint to better support patients and ensure the right geographic coverage," Thibault added.
These smaller stores will stock essential over-the-counter medications and first aid products but will not carry many consumer goods found in CVS, like snacks, greeting cards, and beauty products.
Pharmacy chains face challenges from discount and online retailers, shrinking margins, and theft. CVS has downsized since 2021, closing 800 stores and planning 270 more closures in 2025. Despite this, CVS invests in traditional stores, having opened 100 locations from 2022 to 2024 and planning nearly 30 more in 2025, including inside Target stores.
Industry experts have noted that CVS’s move makes strategic sense, given that pharmacy sales accounted for over 80% of the company’s revenue last year. "That is where most of the value is generated," said Julie Utterback, a senior equity analyst at Morningstar, to the Wall Street Journal. She added that the front-end retail operations of CVS stores have faced increasing challenges due to changing consumer habits and rising competition.
