The news: For the first time in years, CVS will open more stores than it will close, per Bloomberg.

The company plans to open 60 stores in 2026 while closing a few dozen—one-third of the new locations will be pharmacy-only sites, the report revealed. The smaller-format stores will fill prescriptions, sell over-the-counter health and wellness products, and provide some medical services such as vaccinations.

Why it matters: CVS has closed about 10% of its locations over the past three to four years, driven less by pharmacy performance and more by declining front-of-store sales and stores that were too big, creating unnecessary overhead.

• CVS remains the top US pharmacy as measured by total prescription drug sales last year, per March Drug Channels data.
• But its retail sales have been hit by in-store theft and more consumers turning to online merchants and discount retailers for everyday household items that were once central to drugstores.
• CVS’ smaller-format stores (~3,000 square feet) are about half the size of a traditional location.

CVS is also prioritizing its health-focused locations in geographies where they’re most needed.

• For instance, pharmacies are less prevalent on Chicago’s South and West Sides—where five of the first 20 smaller stores are opening.
• People in these underserved communities, who face higher disease rates and greater financial strain, will largely be able to walk to the new locations to buy their medications and speak with pharmacists.

Implications for pharmacies: CVS is rightsizing its pharmacy footprint, suggesting its closures stemmed from an imbalance of having too many locations in some areas and too few in others.

While 20 small-format stores are a limited test, the concept of focusing solely on health products and services will allow CVS and other pharmacies to evaluate whether they can shift away from candy, junk food, and general merchandise and reposition as true healthcare destinations. That will entail offering routine OTC health products and prescriptions in one place, with added value from pharmacist guidance.

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