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CVS, the largest US chain, closed 244 stores between 2018 and 2020. In 2021, it announced plans to close an additional 900 stores. Earlier this month, CVS said it planned to cut about2,900 jobscorporate jobs.
Drug store chains are struggling because of lower reimbursement rates for prescription drugs, according to analysts who cover the industry.
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“If reimbursement rates start to come down and drug stores can’t offset it with other growth, then it has a negative impact on their profitability,” Anderson said.
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But VIllageMD has not been profitable for Walgreens, and Walgreens has tried to cut costs. The chain has been closing VillageMD locations and said over the summer it will divest from the company.
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