CVS to Open 60 Stores, Reversing 1,100+ Closures Since 2022
Drugstore chain CVS announced on March 30, 2026, a plan to open 60 new locations this year, marking a significant strategic pivot from years of contraction. The new sites will include a mix of traditional stores, smaller pharmacy counters within Target stores, and specialized pharmacy-only locations. This multi-format approach suggests a more flexible and targeted growth strategy compared to its previous focus on monolithic, corner-lot stores.
This move reverses a major restructuring effort announced in late 2021, when CVS planned to close approximately 300 stores annually over three years. Since 2022, the company has shuttered more than 1,100 locations. The new expansion, while modest in scale, signals management's view that the downsizing phase is complete and that opportunities for targeted physical growth have emerged.
Downsizing Strategy Left Costly 'Ghost Pharmacies'
The nationwide contraction left a complex real estate legacy, creating so-called "ghost pharmacies" in prime urban locations. The former CVS at the corner of Snelling and University in St. Paul, Minnesota, serves as a stark example. After closing in April 2022, the vacant building deteriorated into a hub for crime and was declared a public nuisance. After years of community pressure, the city ordered and completed its demolition in March 2026 at a cost of $89,000, which will be assessed against the property's owner.
This issue reflects a national trend driven by decades of overexpansion, falling prescription reimbursement rates, and intense competition from online retailers like Amazon Pharmacy. Across the industry, more than 7,000 pharmacies have closed nationwide between 2022 and 2024, leaving vacant storefronts and creating "pharmacy deserts" that affect nearly 50 million Americans. The challenges associated with these vacant properties, from public safety issues to legal battles with municipalities, underscore the hidden costs of CVS's prior downsizing strategy.
New Model Targets Disciplined Growth
CVS's plan to open 60 new stores represents a cautious step toward expansion, not a return to the aggressive growth of the past. The varied formats indicate a more capital-efficient model tailored to specific market needs, from dense urban areas to suburban shopping centers. For investors, this signals a shift from costly restructuring to disciplined, incremental growth.
The decision to expand again suggests confidence from leadership in a refined retail model. While the scale of the new openings is too small to have a major immediate impact on overall revenue, it reflects a strategic attempt to capture growth without repeating the over-saturation that led to the recent wave of closures. The key challenge will be proving that this new, measured approach can deliver higher returns and avoid the real estate liabilities that plagued its last expansion cycle.
