The Associated Press reported that CVS Health will close a tenth of its approximately 10,000 retail stores over the next three years as the company transitions to new store formats and adapts to the changing needs of customers.

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On Thursday, the company said it would close about 300 retail stores a year for the next three years as the company seeks to reduce the number of its stores in some areas.

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According to the Associated Press, CVS said it is analyzing customer buying patterns, population changes and future public health needs to “make sure there are the right types of stores in the right locations.”

No information has been given about where the closures will take place. The company said they would start next spring.

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GlobalData managing director Neil Saunders told the Associated Press that CVS Health has failed to focus on its retail business and has pushed many locations into a “downward spiral of irrelevance.”

“A lot of stores have been stuck in the past with poor lighting, depressing interiors, messy consignments and a lackluster assortment of products,” Saunders said. “They are not destinations or places where people go out of anything other than necessity.

CVS Health said Thursday that stores would be classified into three models. While some will be traditional pharmacies offering certain health care services and retail products, other customers will focus on primary care. The company will use an enhanced version of its “HealthHUB” locations.

For more reporting from the Associated Press, see below.

The company started offering those stores a few years back. The stores are geared toward helping customers monitor chronic conditions like diabetes and stay on top of their health and include health care workers like dietitians, as well as community rooms for things like yoga classes.

Major drugstore chains regularly close poorly performing stores or shutter locations for other business needs. For example, CVS rival Walgreens has closed several stores in San Francisco since 2019, partly due to problems with organized retail theft.

The growth of online shopping has stymied the need for CVS and Walgreens to operate vast networks of drug stores that are only a few minutes’ drive from most American homes.

Drugstores are redesigning their locations as they try to be known as more than just places to get prescriptions and cough syrup. They have become a major source of COVID-19 vaccines as well as annual flu shots.

Companies have dealt with staffing issues as they increased their focus. They have raised starting salaries and hired thousands of additional employees for their stores.

But customers in markets such as Kansas City and Indianapolis have recently complained about long waits from local newspapers or problems receiving vaccinations at some Walgreens stores due to closed pharmacies.

A Walgreens spokesperson said the company is always reviewing staffing levels and trying to minimize disruption to customers when staff shortages affect stores.

CVS Health said Thursday that it expects to charge an impairment charge of between $1 billion and $1.2 billion in the fourth quarter for the closure. The charge will not affect the company’s 2021 adjusted earnings forecast, which it raised earlier this month.

The company also said that it will have no impact on adjusted earnings per share next year.

In addition to operating drugstores, CVS Health also sells health insurance and runs prescription drug plans for large clients such as insurers and employers.

Shares of Woonsocket, Rhode Island-based CVS Health Corp. rose more than 2% to $95.15 on Thursday afternoon, while the broader trading index was nearly flat.