Target Sells Pharmacies and Clinics to CVS

Target Corp. (Minneapolis) has revealed that CVS Health (Woonsocket, R.I.) intends to buy Target pharmacies and clinics in a $1.9 billion sale, which will include 1660 pharmacy locations and 80 clinics in 47 states. CVS will also be taking over operations for those locations.

Women’s Wear Daily reports that Target will use the funds from the sale to buy back shares, reduce costs and inventory and improve operations. The company plans to invest in digital capabilities and in its continuing reinvention of food retailing.

CVS will also pay Target between $20 and $25 million yearly for occupancy and plans to open 20 new clinics within Target stores in three years as part of CVS’ goal to operate 1500 clinics by 2017.