CVS Health Corporation (NYSE:CVS) announced a major reorganization, according to which it is going to shutter around 900 stores over the next three years, closing about 300 stores per year beginning in H1/22, eventually closing almost 10% of its stores.

Additionally, the company will redesign a number of its stores around three formats: locations dedicated to offering primary care services, an enhanced version of HealthHUB locations, and traditional legacy CVS Pharmacy stores.

As part of the reorganization, the company will take a $1.0-$1.2 billion charge to exit these locations. The company anticipates the changes to be non- material to adj. EPS in 2021/2022, but slightly accretive in 2023.