CVS to shut 22 drugstores upcoming 12 months – CNBC

Pedestrians wander by a CVS store on November in San Francisco, California.

Justin Sullivan | Getty Pictures

CVS Health will near 22 “underperforming” drugstores early following year in addition to the 46 stores it shuttered before this calendar year, the organization mentioned Wednesday in a regulatory submitting.

The places weren’t disclosed. The firm recorded a $96 million impairment cost on its third-quarter earnings connected to the 22 shops. It recorded a $135 million cost in the 1st quarter owing to the 46 merchants it closed for the duration of the second quarter.

“We believe that these conclusions will generate increased more time-expression performance,” Main Monetary Officer Eva Boratto advised analysts Wednesday on a get in touch with examining 3rd-quarter benefits. “Our serious estate footprint remained incredibly productive, and we will search for prospects to additional enhance the functionality in our portfolio.”

Drugstores are less than risk as shoppers buy much more pharmacy items on-line and new competitors provide prescription medicines on the net. For instance, Costco and Instacart announced a system Wednesday to test cost-free a person-hour prescription deliveries in California and Washington point out.

Walgreens earlier this year explained strategies to close 200 shops. Amid upheaval in the field, CVS executives have mentioned they do not hope “significant” shop closures.

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