Target Selling Their Pharmacy Business to CVS

It looks like retail giant, Target, is getting set to sell it's Pharmacy business to pharmacy leading chain, CVS Health.

According to FOX CT, this transaction is worth about $1.9 billion, which will bring CVS into some markets they haven't been able to serve as of now. This will affect around 1,660 pharmacies in Target locations which will be re branded as CVS, and will also include new stores being built as well.

With all these changes coming, FOX CT also reports that Target and CVS will work together to build some smaller stores named Target Express. These stores will also offer a CVS Pharmacy location inside as well.

From a marketing perspective, this is a great synergy for the two big brands across the country and the world. It will also give customers of CVS and insurance customers of CVS Caremark more options in terms of locations to get prescriptions filled.

This change doesn't surprise me, as the pharmacy industry has become more and more difficult to survive in.  With new innovations like mail order and online pharmacy options, smaller owned pharmacies are struggling to survive. Sounds like Target is making the right decision to have a well established company continue their Rx business.

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