CVS Health, the 2nd largest pharmacy in the U.S., plans to purchase Target's pharmacy and clinic businesses for $1.9 billion. Target's 80 walk-in clinic locations will be rebranded as CVS MinuteClinics, and CVS Health will open 20 new, additional clinics in Target stores within the next three years. Moreover, CVS Health and Target said that they plan to develop 5 to 10 smaller stores that will be branded as TargetExpress and include a CVS/pharmacy.
Target is still in the process of recovering from its 2013 data breach, and its unsuccessful expansion into Canada, which resulted in 133 stores closing this spring. On the other hand, CVS is using the deal as another opportunity to expand its retail primary care interests, as CVS had previously acquired MinuteClinic in 2006.
Written by Caroline Smith
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Caroline Smith is currently a senior at the University of Notre Dame and is a contributor to Medical Groups. She is majoring in Science-Business and Spanish. After graduation, Caroline plans on entering the field of healthcare consulting. She is most interested in the evolving policy changes in the healthcare industry and enjoys learning about new technologies that are being developed.