CVS Adds to Store Closings List, Announces It Will Shut Down 22 Locations in 2020

By Jack Phillips

CVS Health said it will close 22 “underperforming” drugstores early next year along with the 46 stores that were shuttered in 2019, the firm said on Wednesday in a regulatory filing.

The upcoming “planned closure of 22 underperforming retail pharmacy stores” has cost CVS approximately $96 million as a “store rationalization charges,” according to its earnings report for the third quarter, reported USA Today.

“We believe these decisions will generate enhanced longer-term performance,” CVS Chief Financial Officer Eva Boratto said on Wednesday. “Our real estate footprint remained very productive, and we will look for opportunities to further improve the performance in our portfolio.”

According to CNBC, the chain shuttered 46 stores earlier this year.

CVS has about 9,900 stores around the United States, meaning that the latest round of cuts represents fewer than 1 percent.

Earlier this year, Walgreens pharmacy story chain said it would close about 200 stores.

In 2019, there have already been 48 percent more store closings announced than in 2018, research firm Coresight Research has said.

Chains such as DressbarnDestination MaternityForever 21Kitchen Collection, and others have said they will close locations by the end of the year.

Meanwhile, Sears is slated to close at least 122 Sears and Kmart stores by January 2020 across the United States. Business Insider compiled a list of the stores that are closing, saying the report was compiled based on company filings and statements to local media outlets.

The news outlet said that employees at several stores confirmed the closings.

Following the latest round of closures, there could be fewer than 300 Kmart and Sears locations around the country.

The Wall Street Journal also reported that about a fourth of the 425 Sears and Kmart stores that were brought out of bankruptcy by financier Edward Lampert have closed or are set to close. The Journal cited sources close to the situation.

Bankruptcies

Several U.S. retailers have filed for bankruptcy over the past two years, including Forever 21 and Toys ‘R’ Us.

Forever 21

The fast-fashion retailer filed late on Sunday to restructure its business and requested approval to close up to 178 U.S. stores. Forever 21 listed both assets and liabilities in the range of $1 billion to $10 billion, according to the court filing.

Payless ShoeSource, Inc.

The U.S. discount retailer in February filed for Chapter 11 bankruptcy protection for the second time, along with its North American subsidiaries. The retailer had said it would close about 2,500 stores in North America and wind down its e-commerce operations.

Toys ‘R’ Us

The toy retailer filed for Chapter 11 in September, hoping to restructure some $5 billion in debt, much of which stemmed from a $6.6 billion leveraged buyout by private equity firms in 2005. It liquidated in 2018, a blow to hundreds of toy makers that sold products to the chain, including Barbie maker Mattel Inc and rival Hasbro Inc.

RadioShack

The U.S. electronics chain filed for bankruptcy in March for the second time in a little over two years, faced with a challenging retail environment and an unsatisfying partnership with wireless provider Sprint Corp.

Fred’s Inc.

In September, the pharmacy and discount retailer said it filed for Chapter 11, months after the company began shuttering hundreds of unprofitable stores in the United States.

Gymboree Group, Inc.

The children’s clothing retailer filed for bankruptcy protection in January, the second in almost two years, and said it would close more than 800 Gymboree and Crazy 8 stores.

H. H. Gregg, Inc.

The appliances and electronics retailer and its Gregg Appliances Inc unit filed for bankruptcy protection in March, as they continue struggling with declining sales for about the past four years.

Reuters contributed to this report.

From The Epoch Times