CVS opens smaller format stores as industry sees big shift

Published On Mar 11, 2025, 10:12 AM

CVS is adapting to shifting market trends by opening smaller format stores focusing primarily on pharmacy services, averaging under 5,000 square feet. This strategic shift comes as the company plans to close 270 stores in 2025, aligning with ongoing cost-reduction efforts amidst intense competition and changing consumer preferences. The new locations will offer customized pharmacy services tailored to community needs, while CVS will also continue to open traditional larger pharmacy stores, including those inside Target locations. Analysts suggest that focusing more on the pharmacy side of the business may help CVS mitigate losses from declining in-store retail traffic, as consumers increasingly gravitate towards online shopping.