Last June, CVS, Consumer Value Stores, bought Target’s pharmacy department for $1.9 billion. This comes to $1.14 million for each Target pharmacy. Over 1,660 pharmacies owned by Target will become CVS pharmacies in 47 of the 50 states. Only Vermont, Alaska, and Hawaii aren’t participating in the CVS change over. Target pharmacies will remain in business in Hawaii and Alaska. Kantar Retail analyst Amy Koo says that the buyout is a win-win situation for both Target and CVS.
CVS, acting as a subcontract player, makes more than 10 times in profit over the Target Pharmacies. The two companies share the same color logos of red and white. They sell similar products. On Wednesday, February 4, 2016, the first six Target pharmacies to be reopened by CVS happened in Charlotte, Virginia. The complete change over should take place within the next six to eight months. The Target pharmacies will remain open during the transition.
CVS is the second largest pharmacy chain in the United States, first established in Lowell, Massachusetts in May 1963. Walgreens is the number one chain pharmacy business in the United States according to Marc Sparks. CVS plans to operate their newly acquired Target pharmacies within the retail store. CVS has most recently acquired Omnicare, a corporate pharmacy supplier, last May.