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American Focus > Blog > Health and Wellness > As Walgreens Preps For New Owner, CVS Health Tries Smaller Drugstores
Health and Wellness

As Walgreens Preps For New Owner, CVS Health Tries Smaller Drugstores

Last updated: March 9, 2025 9:50 pm
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As Walgreens Preps For New Owner, CVS Health Tries Smaller Drugstores
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CVS Health is taking a strategic approach to adapt to the changing landscape of the pharmacy industry by introducing new and smaller pharmacy formats in 2025. This initiative comes in response to the closure of hundreds of drugstores across the industry and investor pressure to increase profits. The Wall Street Journal recently reported that CVS plans to open at least a dozen “smaller format” locations in select communities.

The shift towards smaller formats is not entirely new for CVS or its main competitor, Walgreens Boots Alliance. Both companies have been exploring smaller store concepts to better align with changing consumer preferences and shopping habits. With the rise of online shopping and advancements in technology, traditional drugstores face increasing competition from e-commerce giants like Amazon.

CVS’s decision to introduce smaller pharmacy formats is part of a broader strategy to optimize its footprint and better serve the needs of the communities it operates in. The new pharmacies will focus on providing essential services such as medication access, immunizations, and pharmacist-provided healthcare services. Each location will be designed to be less than 5,000 square feet and will feature a full-service pharmacy with a limited selection of over-the-counter products.

In addition to the introduction of smaller formats, CVS has also been reformatting its existing stores to include additional services such as senior centers operated by Oak Street Health. This move reflects CVS’s commitment to providing comprehensive healthcare solutions beyond traditional pharmacy services.

Despite the closure of some stores, CVS remains committed to serving its customers, with 85% of Americans living within 10 miles of a CVS retail pharmacy. The company has plans to open nearly 30 new CVS Pharmacy locations in 2025, in addition to the smaller format pharmacies. These new locations will be strategically placed in select neighborhoods to bridge gaps in care and make it easier for patients to access essential healthcare services.

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Overall, CVS’s shift towards smaller pharmacy formats represents a proactive response to the evolving needs of consumers and the changing dynamics of the healthcare industry. By focusing on tailored solutions and community-specific services, CVS aims to enhance patient care and ensure geographic coverage that meets the unique needs of each neighborhood.

TAGGED:CVSDrugstoresHealthOwnerPrepsSmallerWalgreens
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