CVS Health Corp (NYSE:CVS) plans to shut some of the pharmacies located in American retailer Target Corporation (NYSE:TGT)'s department stores from next month, according to reports.
The move forms part of efforts by CVS, which trades shares on the London and New York stock exchanges, to reduce the number of stores on the ground as it shifts its strategy towards being a health service provider.
CVS is expected to close pharmacies from February through to April, and dozens of pharmacies could be shuttered as part of the move.
The group operates more than 9,000 pharmacies in the United States, after acquiring the pharmacies and clinics located at Target retail outlets in 2015.
The company’s London Stock Exchange share price took a knock this week, falling by nearly 3.5% since Monday, over concerns that its medical costs were higher than expected in the fourth quarter.
In December, CVS confirmed its guidance for adjusted earnings in 2023 after reporting a jump in sales in the third quarter.
CVS said its quarterly health service sales had climbed by 8.4% in the three months to the end of September, alongside an increase in pharmacy and consumer wellness segment of 6%.