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MINNEAPOLIS — Target Corp. has agreed to sell 1,660 pharmacies and 80 clinics inside its stores to CVS Health for $1.9 billion. CVS will rebrand and operate the pharmacies and clinics. The deal creates a long-term partnership, with CVS operating pharmacies in all new Target stores.

Target Corp. has agreed to sell 1,660 pharmacies and 80 clinics inside its stores to CVS Health for $1.9 billion. CVS will rebrand and operate the pharmacies and clinics. The deal creates a long-term partnership, with CVS operating pharmacies in all new Target stores.

Additionally, CVS will open 20 clinics in Target stores over the next three years, and the partners will jointly develop five to 10 new smaller-format TargetExpress stores within three years of the deal’s closing.

"This strategic relationship with Target supports the highly complementary customer base, brand and culture we share," commented CVS Health president and chief executive officer Larry Merlo.

The deal allows CVS to gain access to new markets such as Seattle; Portland, Ore.; Salt Lake City; and Denver.

CVS said it is committed to offering comparable positions to the 14,000 Target employees who work at the pharmacies and ­clinics.

Brian Cornell, Target’s chairman and CEO, said the deal is a win for the company and its ­customers.

The company gets a financial windfall that will be invested in the stores as the retailer focuses on its "signature categories" and "reinvents" its food offerings, Cornell said. And some of the proceeds will be shared with investors via share buybacks. The company’s directors last week authorized a doubling in spending on share repurchases to $10 billion.

Cornell emphasized in a conference call that he expects the CVS presence will bring more traffic and sales to its stores. Target customers will gain access to “best-in-class” pharmacy services, he said.

Target’s ability to compete in the delivery of pharmacy and related health services is "constrained" by its relatively small scale and by the complexities of the nation’s fast-changing health care system, Cornell said.

Cornell said that Target is better off focusing on its turnaround plan, which aims to make the company more appealing to urban dwellers, younger families and Hispanics.

From polling it has done with its customers, Target has learned that its credibility in the area of wellness would be enhanced by the presence of CVS in its stores, said John Mulligan, the company’s chief financial ­officer.

Between 5% and 7% of its customers pick up a prescription drug from a Target pharmacy or buy a health service from a Target clinic, Mulligan said. Once operational costs are accounted for, however, Target loses money on its pharmacies.

Cornell said he expects the partnership with CVS to be "very complementary" to Target’s wellness commitment. Having CVS handle pharmacy services will permit Target to concentrate on such offerings as fitness apparel and wearable technology devices, he said.

The companies said they would cooperate with federal regulators to win approval of the deal, which they hope will close this calendar year. The transition to the CVS brand would occur over a period of six months or longer.

CVS will pay rent to Target for space within the stores. Customers using the CVS-branded pharmacies and clinics would be eligible to apply their CVS ExtraCare loyalty cards.

CVS’ expertise in developing stores in densely populated neighborhoods is appealing to Target, Cornell said. “The relationship with CVS Health will help bring new TargetExpress locations to more communities.”

Target’s new merchandising priorities — style, baby, kids and wellness — will remain the focus of its turnaround efforts, Cornell said. And Target will continue to accelerate its shift away from packaged food to more fresh food items. That means Target customers will see fewer processed snacks and canned food items and more healthier — and pricier — products, such as yogurt and granola.

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