CVS Introduces Smaller Pharmacy-Only Stores to Adapt to Industry Challenges

The company plans to open a dozen compact locations nationwide, focusing solely on pharmacy services as it scales back traditional retail operations.

CVS is launching smaller-format stores averaging under 5,000 square feet that exclusively offer pharmacy services and limited over-the-counter products.
The initiative is part of CVS's strategy to cut costs and address declining front-store sales, theft, and rising competition from online retailers like Amazon.
Since 2021, CVS has closed over 1,000 stores and laid off thousands of employees while planning to close an additional 270 locations in 2025.
The company aims to enhance accessibility by tailoring its new pharmacy-only stores to meet specific community healthcare needs, including medication and immunizations.
CVS's move reflects broader shifts in the pharmacy industry, with rivals like Walgreens and Rite Aid also restructuring through store closures and ownership changes.