Some believe that this is the ultimate goal of leadership, while others believe that retail will not be going anywhere for a long time. I would like to hear more arguments from both sides.
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I work in the corporate office. Its true, we are going to close all the stores down and change our name to ClosedVS pharmacy. Totally makes sense. Nope.
All you have to do is look at front store margin line across the districts. 90% of stores are selling product for less then what we are buying it for. In what world would a business succeed when you operate at a constant loss?
I work in corporate, I can assure you cvs goal is to dissolve retail
Shutting down CVS in next 3 years is just the beginning. As boomers die off they will need less brick and mortar stores and will ramp up internet and central prescription fill locations. We are an insurance company (Aetna plus Caremark). Over next few years cvs will invest more in healthcare space and take away from retail space.
That 70 yr old buying tide while waiting for prescriptions won’t be around much longer, and they can personally deliver their meds in the future or do house visits. Tide and diapers can be bought anywhere, you don’t need cvs for that. Plus shrink in FS isn’t even controllable anymore, company is bleeding in shrink and they don’t want to put money into labor.