CVS Closing 900 Stores In 2022: Will Orange County Be Affected?

ORANGE COUNTY, CA — CVS Health will close 900 stores over the next three years, beginning in the spring of 2022, in response to changes in shopping habits, population shifts and changing healthcare needs, the retailer announced Thursday.

"As part of this initiative, CVS Health will reduce store density in certain locations and close approximately 300 stores a year for the next three years," the company stated in their news release.

CVS has locations in the major Orange County cities of Anaheim, Costa Mesa, Fullerton, Huntington Beach, Irvine, Laguna Niguel, Lake Forest, Mission Viejo and Santa Ana. It is not yet known which, if any, stores would close in Orange County.

CVS did not say how many workers would lose their jobs with the upcoming store closures, and they are changing their retail strategy to employ others. CVS has about 10,104 stores and bout 300,000 workers in the U.S. In a statement, CVS said it is "committed" to helping workers released from the closing stores find other jobs in the company but did not offer any specific details.

As part of the consolidation, CVS said it would add primary care offices at specific sites.

It will also convert more of the remaining locations into health hubs, where customers can get services like diagnostic tests, mental-health services and hearing exams.

"Our retail stores are fundamental to our strategy and who we are as a company," CVS President and CEO Karen S. Lynch said in a statement. "We remain focused on the competitive advantage provided by our presence in thousands of communities across the country, which complements our rapidly expanding digital presence."

The move is a reversal of CVS Health's strategy in recent years. Since 2018, CVS has added 200 stores in the U.S. while its chief rival, Walgreens Boots Alliance Inc., closed nearly 600 retail pharmacies. Both companies have played a crucial role in the roll-out of COVID-19 vaccines. About one-in-three Americans vaccinated against the coronavirus got their shot at a pharmacy.

At the same time, CVS the ongoing national labor shortage has hampered employment

While CVS hired 20,000 pharmacists, pharmacy technicians and nurses in the three months ended Sept. 30, the company had hoped to hire 25,000 people at a one-day hiring event as part of its third-quarter hiring push.

The announcement came on the same day Neela Montgomery announced plans to leave the company by the end of the year. Montgomery is CVS Health's executive vice president and president of CVS Retail/Pharmacy.

CVS named Prem Shah chief pharmacy officer, a newly-created position, effective immediately. Shah, 41, and Michelle Peluso, 50, will become CVS Health's retail business co-presidents. Both Shah and Peluso will report to Lynch, with Peluso overseeing non-pharmacy operations in CVS stores.

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