CVS Pharmacy Acquires Schnucks Pharmacies, 11 Will Close

Eleven Schnuck Markets’ pharmacies will close after CVS Pharmacy’s acquisition of 110 Schnuck’s pharmacies.

Similar to CVS’s arrangement with Target, CVS Pharmacy and its subsidiaries will operate 99 of the St. Louis, MO-based Schuck’s pharmacies and rebrand them as CVS Pharmacy. CVS Pharmacy will acquire the prescription files from 11 Schnucks’ pharmacies and transfer them to nearby CVS Pharmacy locations.

The retailer expects the transaction to close by the end of the second quarter.

CVS Pharmacy will post all pharmacist and pharmacy tech positions, and will interview all Schnucks employees who apply, the drug store chain said in a press release.¹ In-store changes will be rolled out over a period of several months after the completion of the transaction “as CVS Pharmacy and Schnucks work to ensure the smoothest possible transition for all pharmacy patients,” the retailer said.

The partnership provides CVS Health with a capital-efficient way to expand into key areas, the drug store chain said. "We have great admiration for Schnucks and believe CVS Pharmacy can bring additional clinical services to its customers,” said Jon Roberts, executive vice president and chief operating officer of CVS Health.

One of CVS Health's strategic imperatives is to “Be Local,” Roberts said. “By opening CVS Pharmacy locations within Schnucks stores, we're increasing access to high-quality care and meeting customers where they are.”

In 2014, CVS Pharmacy became the first and only major retail pharmacy to remove tobacco from its shelves, while Schnucks stores became tobacco free as of January 1, 2020. “Schnucks' decision to exit tobacco further aligns the company with CVS Health,” CVS said.

"As Schnucks continues to expand our emphasis on health and wellness, this collaboration with CVS is an opportunity for us to align with a company that has a similar focus," said Todd Schnuck, chairman and chief executive officer of Schnucks. "This partnership allows us to continue to provide quality pharmacy services to our customers in a manner they've come to expect, while supporting our mission to nourish people's lives. It also provides our pharmacy teammates an opportunity to further their careers with a premier retail pharmacy chain.”

Schnucks specialty pharmacy patients will benefit from CVS Specialty's expertise in providing ongoing disease education, counseling, and benefits verification, as well as coordination of care with multiple health care providers, comprehensive patient education and adherence management, CVS Pharmacy said.

Disclosures:

1. CVS Pharmacy signs agreement to acquire, rebrand and operate Schnucks Pharmacies [news release]. CVS Health’s website. https://cvshealth.com/newsroom/press-releases/cvs-pharmacy-signs-agreement-acquire-rebrand-and-operate-schnucks. Accessed March 10, 2020.