CVS closing 900 stores

[297point1]

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CVS Health is closing 900 stores over the next three years, amounting to nearly 10% of its footprint, in response to the changing of "consumer buying patterns."

The drug store chain said Thursday that the closures will result in a retail presence that ensures it has the "right kinds of stores in the right locations for consumers and for the business." A list of locations shutting down, which will happen beginning next spring, was not immediately released.

CVS is closing 900 stores | CNN Business

CVS Health is closing 900 stores over the next three years, amounting to nearly 10% of its footprint, in response to the changing of "consumer buying patterns."

www.cnn.com

 

[ancienbon]

I predicted that would happen . I was right . all the slow stores will be closed . It may be time to change company.

 

[Gombrich12]

Retail pharmacy is on the way out. Walgreens is also pivoting towards health care clinics.

 

[RxPreceptor]

Man, store I've been at for 5+ years was planned to get remodeled over 3 times (none of which ended up happening)...new store I transfer too gets remodeled 2 months into being there (didn't seem like it even needed remodeling compared to old store....seems like it was done purely based on volume).

Anyways....I always like to think of this similar to the Roman empire & aware/predicted something like this would go down. Starting fires and playing a violin

 

[watchfulwaiting1957]

Man, store I've been at for 5+ years was planned to get remodeled over 3 times (none of which ended up happening)...new store I transfer too gets remodeled 2 months into being there (didn't seem like it even needed remodeling compared to old store....seems like it was done purely based on volume).

Anyways....I always like to think of this similar to the Roman empire & aware/predicted something like this would go down. Starting fires and playing a violin

I think if you are at a store that was recently remodeled you should be okay. Why would CVS invest in a store they are going to close. This is bad news for pharmacists though. 900 stores over 3 years is roughly 2,250 pharmacists losing their jobs by 2024 in a saturated and tight labor market.

 

[mentos]

I hope they all close.

 

[RxPreceptor]

I hope they all close.

Retail pharmacy is like metastasized cancer

 

[ornithoptor]

I am pretty shaken with this announcement and very surprised at only a handful of people have commented on this thread.

I think this article has foretold the future of the retail pharmacy profession. While Walgreens use theft and loss of revenue as reasons to close their stores; CVS simply takes the higher route by making this announcement.

Age of retail pharmacy consolidation was coming due to store and pharmacists saturation before Covid. The needs for Covid shots pause the process and now Walgreens and CVS are picking up where they left off. There is simply no need for that many stores to cannibalizes corporate profits. Let people drive 5 more minutes or wait overnight for their meds.

Even at this time of Great Resignation, Pharmacists have no leverages, because the supply of pharmacists still far outweighs the demand.
We live in this new vicious cycle that:
Loan burden are not wiped under the new administration
Not enough pharmacists have resigned, because stimulus money is not enough for pharmacist pay
Do more with less because technicians quit with free money from the Feds
New Grads now have to settle for even less pay and more work because of the loan burdens, stiff competitions, and lack of availability of the job openings.

Let’s stay more sensitive with this news, and don’t bury our heads in the sands. Colleagues from CVS, please feel free to share any insights or exit strategies.

Good luck to us all.

 

[radio frequency]

I am pretty shaken with this announcement and very surprised at only a handful of people have commented on this thread.

I think this article has foretold the future of the retail pharmacy profession. While Walgreens use theft and loss of revenue as reasons to close their stores; CVS simply takes the higher route by making this announcement.

Age of retail pharmacy consolidation was coming due to store and pharmacists saturation before Covid. The needs for Covid shots pause the process and now Walgreens and CVS are picking up where they left off. There is simply no need for that many stores to cannibalizes corporate profits. Let people drive 5 more minutes or wait overnight for their meds.

Even at this time of Great Resignation, Pharmacists have no leverages, because the supply of pharmacists still far outweighs the demand.
We live in this new vicious cycle that:
Loan burden are not wiped under the new administration
Not enough pharmacists have resigned, because stimulus money is not enough for pharmacist pay
Do more with less because technicians quit with free money from the Feds
New Grads now have to settle for even less pay and more work because of the loan burdens, stiff competitions, and lack of availability of the job openings.

Let’s stay more sensitive with this news, and don’t bury our heads in the sands. Colleagues from CVS, please feel free to share any insights or exit strategies.

Good luck to us all.

I think this isn’t accurate everywhere. It seems we have been short pharmacists a lot this past year. We aren’t shorting new grads on pay where I work. We are also short techs, but I don’t agree with your assessment as to why we are short techs.

Also, maybe this is insensitive, but they are your loans. Nobody forced you to take them. It was never guaranteed that any incoming president would wipe all federal student loans.

 

[VA77]

Just think...a PANDEMIC couldn't stop the retail implosion that is occurring with all the money being raked in so I cant see anything from stopping the implosion.

 

[Xenophylia]

Here's an idea! (I'm thinking like a CVS corporate type) Let's offer 50k sign on bonus to staff the stores that we know will close in less than 2 years, but tell the new employees they need to stay for 2 years to get the bonus. Close the store before 2 years with no relocation offer= no promised sign on bonus! You would literally have to be crazy to go work for CVS with this announcement.....unless you're already unemployed.

 

[Xenophylia]

Retail pharmacy is like metastasized cancer

Does that make Amazon a potential form of chemo?

 

[PharFromNormal]

Does that make Amazon a potential form of chemo?

I’d say more of a carcinogen

 

[RxPreceptor]

Does that make Amazon a potential form of chemo?

Not unless they buy all the closing stores and setup brick & mortar locations/chain to compete and become the cancer itself?

Mail order has not eliminated retail; retail will always seem to serve a purpose for Acutes, just maybe less emphasis on the chronics like it has. There's always plenty of people who can't fathom self responsibility and planning things ahead of time who want retail pharmacy employees to wipe their a$$e$ for them essentially

 

[DH1987]

I am pretty shaken with this announcement and very surprised at only a handful of people have commented on this thread.

I think this article has foretold the future of the retail pharmacy profession. While Walgreens use theft and loss of revenue as reasons to close their stores; CVS simply takes the higher route by making this announcement.

Age of retail pharmacy consolidation was coming due to store and pharmacists saturation before Covid. The needs for Covid shots pause the process and now Walgreens and CVS are picking up where they left off. There is simply no need for that many stores to cannibalizes corporate profits. Let people drive 5 more minutes or wait overnight for their meds.

Even at this time of Great Resignation, Pharmacists have no leverages, because the supply of pharmacists still far outweighs the demand.
We live in this new vicious cycle that:
Loan burden are not wiped under the new administration
Not enough pharmacists have resigned, because stimulus money is not enough for pharmacist pay
Do more with less because technicians quit with free money from the Feds
New Grads now have to settle for even less pay and more work because of the loan burdens, stiff competitions, and lack of availability of the job openings.

Let’s stay more sensitive with this news, and don’t bury our heads in the sands. Colleagues from CVS, please feel free to share any insights or exit strategies.

Good luck to us all.

The reason I haven't left Wags is because I know that unemployment money can't last forever. Seems nobody thinks about the long term effects of their decisions and I feel this is part of the reason we're in this mess...

 

[Sparda29]

Good. Hopefully, all of them close.

 

[lord999]

Quite a predictable situation and the major reason for the over building was to meet certain contracts without having to share with a competitor.

 

[grizzlesgrizzlies]

Does that make Amazon a potential form of chemo?

It's more like a form of cancer that kills off an existing one (CVS)

 

[owlegrad]

It's more like a form of cancer that kills off an existing one (CVS)

Fighting fire with fire? 🔥

 

[ornithoptor]

I think this isn’t accurate everywhere. It seems we have been short pharmacists a lot this past year. We aren’t shorting new grads on pay where I work. We are also short techs, but I don’t agree with your assessment as to why we are short techs.

Also, maybe this is insensitive, but they are your loans. Nobody forced you to take them. It was never guaranteed that any incoming president would wipe all federal student loans.

No offense taken! I am not in the retail boat and the loan is paid off. However, I still am licensed and care much about the profession.

I chatted with a local retail pharmacist at CVS who graduated recently and wanted to raise awareness by identifying the issues of store closures.

We have all seen people fighting hard to protect their jobs in the news with other professions, we have also seen public opinions sometime can change corporate decisions. Our community should galvanized when reduction of CVS stores that will lead job losses, pharmacist pay and even demise of our profession. I am puzzled by the level of attention and responds from the forum members compare to the past. Maybe people are fatigued with the bad news?

My two cents:
We should have some level of reactions and discussions in our forum. Then individual pharmacist could engage with the board member in your state regarding job losses in the next meeting. Ask your representatives to engage CVS on the exit strategy and minimize closures in your state. Of course, the alternative is to not act and play dead until picked off one by one. Representative are elected in some states, use your leverage.

 

[mentos]

They should take the Rphs from these 900 stores and properly staff the remaining stores like they did 17 years ago.

The store where I used to work had 3 Rphs overlap, then it got cut to 2 Rphs then 1.

 

[RxPreceptor]

They should take the Rphs from these 900 stores and properly staff the remaining stores like they did 17 years ago.

The store where I used to work had 3 Rphs overlap, then it got cut to 2 Rphs then 1.

My former store went 24 hours to non-24 hours; somehow only managed due to overlap allowed. Turned into a complete dumpster fire once we got cut 50 RPh hours....the same week we started doing COVID vaccines (just brilliant planning on middle management's part - literally all but 2 or 3 original staff remain including both store front and pharmacy).

 

[VA77]

I want CVS to close even more stores so it show the power they have to manipulate the market. Show that they can make patients wait indefinitely when they own the PBM and the insurance company. I mean seriously who can stop them? Every government and state body has let them have carte blanche. I think it's funny that people think Amazon was going to make big inroads but until they spend hundreds of billions its not going to happen.

 

[grizzlesgrizzlies]

We have all seen people fighting hard to protect their jobs in the news with other professions, we have also seen public opinions sometime can change corporate decisions. Our community should galvanized when reduction of CVS stores that will lead job losses, pharmacist pay and even demise of our profession. I am puzzled by the level of attention and responds from the forum members compare to the past. Maybe people are fatigued with the bad news?

My two cents:
We should have some level of reactions and discussions in our forum. Then individual pharmacist could engage with the board member in your state regarding job losses in the next meeting. Ask your representatives to engage CVS on the exit strategy and minimize closures in your state. Of course, the alternative is to not act and play dead until picked off one by one. Representative are elected in some states, use your leverage.

Or how about we as pharmacists (or our professional organizations) should've lobbied against the reckless proliferation of pharmacy schools over the past 15 years? Our profession in general is made up of individuals with no backbone and limited business acumen with zero concept of basic mechanisms of free market capitalism like supply and demand. We all want the comfy six figure pay without lifting a finger to fight for our profession.

That ship has long sailed. The profession cannot be saved. Let it all burn down for all I care

 

[Pronounce Doxazosin]

I’m convinced that if COVID couldn’t save retail pharmacy, then nothing can or will

 

[VA77]

Wonder when we going to see the day where you see multiple schools start making closing announcements? I mean CVS is the largest employer and with 10% decrease the writing is certainly on the wall.

 

[RxPreceptor]

Well, I know like 95+% of us on these forums like to focus on the negativity...how about some potential positives? Potential for more overlap & less dangerously understaffed working conditions. 900 stores might seem like a lot but out of 10,000 locations, this seems more like a change in strategy after a bit too many questionable/unnecessary acquisitions. Quality > Quantity focus for a change

Store I'm in that got upgraded finally got decent receipt printers, scanners, & new (more workstations) computers as opposed to equipment that appears to be from the 1980s.

 

[VA77]

Well, I know like 95+% of us on these forums like to focus on the negativity...how about some potential positives? Potential for more overlap & less dangerously understaffed working conditions. 900 stores might seem like a lot but out of 10,000 locations, this seems more like a change in strategy after a bit too many questionable/unnecessary acquisitions. Quality > Quantity focus for a change

Store I'm in that got upgraded finally got decent receipt printers, scanners, & new (more workstations) computers as opposed to equipment that appears to be from the 1980s.

Why would they increase overlap? I cannot come up with a reason. How have they ever focused on quality? They own the PBM and insurance company now and they are going to scale back and if their customers don't like it they can go somewhere else. Oh wait, they are locked in.

 

[Gombrich12]

Why would they increase overlap? I cannot come up with a reason. How have they ever focused on quality? They own the PBM and insurance company now and they are going to scale back and if their customers don't like it they can go somewhere else. Oh wait, they are locked in.

It's pretty simple, the goal is to push the cost to fill a prescription towards $0. Pharmacists are the largest part of the cost to fill a script so pharmacist compensation in real terms will be going down for the foreseeable future. The idea of there being a bunch of people who are highly compensated to manage and sell commodities in a retail setting seems like something from the pre-smartphone age.

Walgreens is rolling out central fill again, maybe this time it will work:

Walgreens plans 9 more micro-fulfillment centers for prescription delivery

The facilities will use automation to save pharmacists time and help Walgreens speed its prescription fulfillment process, according to executives.

www.supplychaindive.com

"Once we develop this new pharmacy operating model, this will really free up our pharmacists and take all that workload away, so they can do more," Gourlay said in March, referring to the work it takes to fill pharmaceutical orders compared to other more valuable labor, such as diagnostics and testing.

 

[VA77]

So CVS stock went up when they announced store closures which I guess the analysts see as trimming the fat. The question is how many stores could they cut before the analysts would say that is too much and stock goes down...15% 20% 25%...etc

 

[PharmtoCS]

It's more like a form of cancer that kills off an existing one (CVS)

CVS is like the OG COVID strain.

Amzon will be like the much more virulent and contagious Delta variant that displaces the OG strain.

 

[WVUPharm2007]

Gonna enjoy that $2500 bonus coming to FT RPHs on Dec 17th, though...

 

[mentos]

Gonna enjoy that $2500 bonus coming to FT RPHs on Dec 17th, though...

That's it? Aren't RNs getting like 5k per week?

My friend is a nurse practitioner but she went back to floor nursing cause it pays way more.

 

[JustFillIt]

Gonna enjoy that $2500 bonus coming to FT RPHs on Dec 17th, though...

You serious Clark? Or are you just pulling my leg?

Your CVS right? You guys getting a bonus?

 

[JustFillIt]

Or how about we as pharmacists (or our professional organizations) should've lobbied against the reckless proliferation of pharmacy schools over the past 15 years? Our profession in general is made up of individuals with no backbone and limited business acumen with zero concept of basic mechanisms of free market capitalism like supply and demand. We all want the comfy six figure pay without lifting a finger to fight for our profession.

That ship has long sailed. The profession cannot be saved. Let it all burn down for all I care

I agree 100%. We should have protected our profession a long time ago. Unfortunately, during the golden age of pharmacy 2001-2010 - too many people just kept their her down and rode the gravy train.

Now - we pay the price

 

[footfairy]

I agree 100%. We should have protected our profession a long time ago. Unfortunately, during the golden age of pharmacy 2001-2010 - too many people just kept their her down and rode the gravy train.

Now - we pay the price

I almost cant blame them. It was easier work back then and you could treat it like business/tech today where you just hopped chains every 2 years for a raise and 30-40k bonus.

You probably could have pocketed a solid +2million from 2000 to 2010 and be retired.

 

[APN-59 rph]

I floundered into the pharmacy biz out of the military about 1984 ish and am presently floundering back out. With hindsight the biz has been a perfect bubble. I had no idea what I was getting into but my family has been with the medics one way or another since the 1800's. " Your uncle (MD) didn't like druggists" was from my Mom (RN) etc. etc. but I had pre-reqs and the school was a short BS with undergrad costs so away I went. The school was interesting. It just had little to do with being a chain druggist. For me even as an intern (1 Yr.) it's always been either high speed drudge work or newly opened slow venues. You all know what happened next...schools saw a gold mine ( Doctorate...new buildings...tuition thru the roof)...chains saw a goldmine (expand expand) ...pay went up up... the bubble is now deflating except.......grads, chains, pharmacy schools etc. have lots of loans yet to pay.....As we are now seeing only the chains can back right on out. The rest are starting to flounder in reverse. Not sure about how this will resolve but the big boys will stay big...New Grads? At best a job with enough pay to get by. There will be (are?) too many grads for too few jobs until the 25 year old bubble deflates. The real future is speculation at best. I might have some hope for the little guys but have been watching how COSTCO operates and I just can't tell where that will go. As an aside..I was chatting with another Rph buying groceries (outside the grocery chain pharmacy..one of three in town) and they are getting called out of their organizations central pharmacy to do the tech job at satellites 'caus the techs don't show up.. To us in the system..good luck....to those considering..stay out...unless Dad owns one..and maybe even then. My whole screed could be boushwah..but I don't think so Take Care

 

[Xenophylia]

Here's an idea! (I'm thinking like a CVS corporate type) Let's offer 50k sign on bonus to staff the stores that we know will close in less than 2 years, but tell the new employees they need to stay for 2 years to get the bonus. Close the store before 2 years with no relocation offer= no promised sign on bonus! You would literally have to be crazy to go work for CVS with this announcement.....unless you're already unemployed.

Wow. This is the most likes I've ever gotten on one post. Maybe I should be the next CEO for CVS. I apparently have the correct way of thinking....

 

[projektreverb]

Wow. This is the most likes I've ever gotten on one post. Maybe I should be the next CEO for CVS. I apparently have the correct way of thinking....

CVS lurks this forum. Expect that they’ll send you the offer later today.

 

[Xenophylia]

Got one!

 

[RxPreceptor]

Got one!

PIC with 50k sign on bonus 2 year contract for a store that will inevitably be closing in just under 2 years? @ 45$/hour...you know to compensate for that "sweet" sign on bonus?

 

[lord999]

Wow. This is the most likes I've ever gotten on one post. Maybe I should be the next CEO for CVS. I apparently have the correct way of thinking....

Does anyone remember the great Eckerd's sign-on bonus theft of 2004? CVS really got screwed with that. Also, there's a performance termination clause in almost every state that a no-fault layout still holds the business at fault for retention bonus.

 

[owlegrad]

Does anyone remember the great Eckerd's sign-on bonus theft of 2004?

No, do tell?

 

[mentos]

I didn't know what a pharmacy was in 2004. I thought CVS was a mini mart like 7 Eleven. Had no idea there was someone making 6 figures in the back.

 

[lord999]

No, do tell?

So, Eckerd's royally screwed up their sign-on contracts. They were worded in a way that the sign on person had to work for Eckerd's for a certain amount of time and no competitors. Literally two months after everyone signed in May, Eckerd's got acquired by CVS in toto. The immediate contract actually got everyone released at CVS was a competitor, and CVS could not do anything about it. That particularly year, the Eckerd's pharmacists who had sign on and retention bonuses got to keep their 3 and 5 year bonuses (I know the 5 year was $80k) and they got exactly the same bonuses from CVS if they stayed.

 

[Alexis_pharmD]

I didn't know what a pharmacy was in 2004. I thought CVS was a mini mart like 7 Eleven. Had no idea there was someone making 6 figures in the back.

same here. I couldn't believe that small independent pharmacies in NY city were making that much.

 

[pinkpharmd]

If all these stores close, where is the public going for their COVID third, fourth, fifth, hundredth dose?

 

[RxPreceptor]

If all these stores close, where is the public going for their COVID third, fourth, fifth, hundredth dose?

COVID vaccine ice cream truck business model previously discussed in other threads here

 

[mentos]

If all these stores close, where is the public going for their COVID third, fourth, fifth, hundredth dose?

How about doctors offices? You know, where people used to get vaccinated before pharmacies did it.

 

[PharmtoCS]

If all these stores close, where is the public going for their COVID third, fourth, fifth, hundredth dose?

There are still pharmacies that exist. The public will just have to wait 2 months for the next available appointment.