Rampant looting and shoplifting has made running a retail location in some cities, namely ones firmly in the grip of leftists and their soft-on-crime policies, nearly impossible to do profitably, even for major retailers. When paired with the shift toward online shopping rather than physical retail, the economics and risks, particularly in the form of tort liability, just don’t make sense for many companies. One such company is CVS, which has announced that it will shutter 900 stores by the end of 2024, nearly a quarter of its total.
The decision was first announced in November of 2021, after which time the company stuck by its closure decision. Three hundred stores closed in 2022, the same number have either already been closed or are set to be closed in this year, and the same number will be closed in 2024. “The company has been evaluating changes in population, consumer buying patterns and future health needs to ensure it has the right kinds of stores in the right locations for consumers and for the business. As part of this initiative, CVS Health will reduce store density in certain locations and close approximately 300 stores a year for the next three years,” CVS announced at the time.
CVS, commenting on the decision, said, “Maintaining access to pharmacy services in the communities we serve is an important factor we consider when making store closure decisions. Other factors include local market dynamics, population shifts, a community’s store density, and ensuring there are other geographic access points to meet the needs of the community.” CVS CEO Karen Lynch, speaking at the time of the announcement, said: “Our retail stores are fundamental to our strategy and who we are as a company.” Lynch added, “We remain focused on the competitive advantage provided by our presence in thousands of communities across the country, which complements our rapidly expanding digital presence.”
Joining CVS in mass closures was, Rite Aid, which has closed more than two dozen store locations this year. The mass closures come after the pharmacy’s executive vice president of retail, Andre Persaud, considered putting all of the store’s items behind plexiglass to deter theft last year, as Slate reported.
Retail theft is substantial. CapitalOne Shopping Research, reporting on the scope of the problem, said, “Stores lost an estimated $86.6 billion to retail theft in 2022; projections indicate that in 2025, retail theft may cost stores over $115 billion.”
