Why Is CVS Closing More Stores?
CVS Health (NYSE: CVS) announced earlier this year that it was closing 46 stores that weren't performing well. The closures were in several states, and investors recently learned that the company isn't done shuttering stores -- it's planning to close another 22 locations next year.
Store closures are normally executed by a company that's underperforming or bleeding money and needs cash. However, that's definitely not the case with CVS as it has generated more than $10 billion in free cash flow over the past four quarters, and during that time, its operating income totaled $11.7 billion, while net income was a very strong $4.5 billion.
The store closures aren't happening for financial reasons but instead because the company is executing a significant strategy change.
Source Fool.com
