CVS To Close Hundreds Of Stores: Will Martinez Locations Survive?

MARTINEZ, 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 health care needs. The closings will take place over the next three years, according to the company.

The Woonsocket, Rhode Island-based company did not say which stores it would close or which states would be most affected by the closures.

Nor did the company say how many workers would lose their jobs. CVS has about 300,000 workers in the United States and 10,100 stores, including two in the Martinez area:

• 560 Center Ave.
• 6668 Alhambra Ave.

In a statement, CVS said it is "committed" to helping workers at the stores it closes find other jobs in the company but did not offer any specific details.

As part of the consolidation, CVS said it will add primary care offices at certain sites. It will also convert more of the remaining locations into what it calls health hubs, where customers can get diagnostic tests, mental health services, hearing exams and other services.

"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," CVS President and CEO Karen S. Lynch said in a statement.

The move is a reversal of CVS Health's strategy in recent years. Since 2018, CVS has added 200 stores in the United States while its chief rival, Walgreens, announced the closing of nearly 600 retail pharmacies in 2017 and 200 closings in 2019. More stores have closed this year. San Francisco locations were closed because of organized theft rings, according to the company.

Both companies have played a crucial role in the rollout of COVID-19 vaccines. About one in three Americans vaccinated against the coronavirus got their shot at a pharmacy.

The announcement came the same day CVS named Prem Shah its chief pharmacy officer, a newly-created position. Shah, 41, and Michelle Peluso, 50, will become co-presidents of CVS Health's retail business.

Meanwhile, Walgreens recently announced it is raising its starting minimum wage for its more than 25,000 employees to $15 per hour, a change that's expected to be fully implemented by November 2022. The Deerfield, Illinois-based chain has more than 9,000 stores nationwide.