CVS Opens Small-Format Pharmacies in Underserved Areas
The retailer is launching compact 3,000-square-foot locations to reach communities left behind by major pharmacy closures.
Updated on Oct. 20, 2026 in Healthcare
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CVS Health is pivoting to smaller store footprints to improve access to prescription services and immunizations in underserved regions. The initiative comes as major pharmacy chains, including Walgreens and the now-shuttered Rite Aid, have closed over one thousand retail locations.
Why it matters
The shift toward smaller pharmacies allows CVS to reduce overhead costs such as rent and inventory while addressing the void created by recent industry-wide closures. These compact outlets focus specifically on delivering essential clinical services where access was previously limited.
CVS currently operates approximately 9,000 stores, while Walgreens manages 7,991 locations following recent closures. The U.S. pharmacy market is valued at $739.4 billion for 2026.
The players
CVS Health
This major pharmacy chain operates approximately 9,000 retail stores across the United States.
Walgreens
This retail pharmacy chain currently operates approximately 7,991 locations nationwide.
Rite Aid
This pharmacy chain officially exited the retail market after closing its final 2,000 stores in 2023.
The details
CVS is deploying 3,000-square-foot pharmacy concepts with limited front-of-store inventory to streamline operations. These units are already established in cities including Birmingham, Chicago, Detroit, Houston, and Washington, D.C.
Timeline
1980-2000: Independent pharmacies declined from 40,000 to 21,000.
2018: Walgreens operated over 9,560 retail locations.
2023: Rite Aid completed the closure of all 2,000 of its stores.
October 2026: CVS opened a new small-concept pharmacy in Roxbury, Massachusetts.
Market Landscape
The expansion follows the 2023 mass closure of Rite Aid retail locations, which created significant gaps in healthcare access. This strategy allows CVS to fill underserved niches while positioning itself against the ongoing consolidation seen at rival firm Walgreens.
Residents in underserved areas may gain better access to vital prescriptions and immunizations through these new, localized pharmacy hubs. Customers should note that these smaller stores offer limited general merchandise compared to traditional retail pharmacies.
The takeaway
The pivot toward smaller, clinical-focused pharmacies reflects an industry shift away from large-format retail. Consumers living in areas affected by recent mass store closures may see improved proximity to essential pharmacy services as these compact models scale.
What happens next
CVS Health aims to open 20 small-format stores throughout 2026, with further expansion potentially scheduled for later that year if current locations meet profit expectations.
Further reading
For additional context on industry trends, visit the Healthcare section.
Source note: This article includes information reported by The Telegraph.
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