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WOONSOCKET, R.I. – CVS Health will open a dozen or more smaller-format pharmacy locations across the U.S. over the next year, marking a strategic shift in response to industry challenges. These new stores will be under 5,000 square feet—less than half the size of a typical CVS—and prioritize full-service pharmacy operations with limited retail offerings.
Each location will average less than 5,000 square feet, feature a full-service pharmacy with limited over-the-counter products available for purchase, and be designed to meet the community’s specific pharmacy needs.
"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.
While these smaller stores will stock essential over-the-counter medications and first aid products, they will not carry many of the consumer goods traditionally found in CVS locations, such as snacks, greeting cards, and beauty products.
The decision comes as pharmacy chains grapple with challenges, including rising competition from discount and online retailers, shrinking retail margins, and increasing incidents of theft. CVS has been pursuing a downsizing strategy since 2021, closing 800 stores so far and planning an additional 270 closures in 2025.
Despite the closures, CVS continues to invest in its traditional stores. Between 2022 and 2024, it opened 100 locations, and nearly 30 more are planned for 2025, including locations inside Target stores.
As CVS adapts to shifting consumer habits and market conditions, its strategic realignment signals a broader industry trend of pharmacies prioritizing healthcare services over traditional retail. 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.
