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Going To CVS Pharmacy…Inside Target

Target sells its pharmacy and clinic business to CVS Health.

The typical shopping trip to Target for milk, laundry detergent, mascara, birthday cards and your kid’s Amoxicillin prescription (and maybe a cute new area rug or pair of sandals) is about the change. CVS Health Corporation and Target Corporation have entered into a definitive agreement for CVS Health to acquire Target's pharmacy and clinic businesses for approximately $1.9 billion.
 
Through this agreement, CVS Health will acquire Target's more than 1,660 pharmacies across 47 states and operate them through a store-within-a-store format, branded as CVS/pharmacy.  In addition, a CVS/pharmacy will be included in all new Target stores that offer pharmacy services.
 
Target's nearly 80 clinic locations will be rebranded as MinuteClinic, and CVS Health will open up to 20 new clinics in Target stores within three years of the close of the transaction. 

In addition, CVS Health and Target plan to develop five to 10 small, flexible format stores over a two-year period following the deal close, which will each be branded as TargetExpress and include a CVS/pharmacy.
 
This relationship, according to Target and CVS brings together two leading retailers with complementary strengths, brands and cultures to enhance the health care experience for Target guests while expanding CVS Health's retail presence in new markets, such as Seattle, Denver, Portland and Salt Lake City.
 
According to Target, the deal also enables Target to strengthen its focus on wellness as a signature category. Moving forward, enhanced efforts by Target will center on continuing to deliver products and experiences to help guests eat well, be active and find natural and clean label products, the firm said.
 
Target and CVS Health said they will carefully evaluate and select locations best-suited for new small format Target stores with a CVS/pharmacy inside. Additionally, Target and CVS Health will explore innovative, new market offerings that have the potential to generate strong returns on investment and offer long-term benefits for customers and communities.

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