I think that additional store closings are definitely on the table. The question is how many? That said, when you have close to 9,000 stores, there's alot you can chop.
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Store closings have pretty much already happened. We’ve been in a store count reduction scenario for three years now, and appropriately so. If a store isn’t making money, it already has been or is already scheduled to be closed at this point.
And the problem with the CVS balance sheet isn’t actually the stores at this point. The retail side (which is a small portion of the overall business when you look at the big picture), is actually holding its own considering the market headwinds. The ki-ler is the insurance and PBM side that is hemorrhaging money. CVS spent 10’s of billions of dollars in acquisitions that haven’t panned out, and now they are scratching and clawing to save a much, much smaller $2B by tightening expense and sacrificing talent.
No surprise we recently got a new HR head this year. “Welcome to CVS! As your first official major project, please oversee some layoffs? Thanks!” :(
I’m don’t think anyone should think about MB as the savior. He insisted on KL being the heir apparent when Larry Merlo retired. Look where we are now.
Interesting. I also think he didn't like how his departure from Aetna was handled. He wants to come back as a white knight to save it.
I think they will be announcing they are selling off Aetna. Bertolini was the co-CEO of Bridgewater Associates, one of the world's largest hedge funds. He is currently the CEO of Oscar Health and I bet he is making calls to test the waters with his financial contacts.