While the Target pharmacy business was successful in earning more than $4 billion in sales, the retailer has since decided to shut down the operation as a cost-saving measure. Rather than operating its own pharmacy business, Target is having CVS occupy these existing retail spaces in more than 1,500 retail stores.
In the style of Target's "Pay Less" promise to consumers, CVS is also promising to offer low-cost generic drugs to shoppers. Similarly, CVS will be running its own rewards program as a replacement for Target's RedCard. With CVS' new loyalty program in place, Target shoppers will be able to earn discounts with the home goods retailer.
This is not the first time that pharmacy businesses have been sold to CVS, but this cost-saving pharmacy venture promises new benefits for Target shoppers.