CVS Pharmacy to acquire, rebrand Schnucks’ pharmacy business
Schnucks is getting out of the pharmacy business.
CVS Pharmacy has entered into an agreement to acquire Schnuck Markets Inc.'s retail and specialty pharmacy businesses. Under the agreement, CVS Pharmacy will acquire and operate 99 of the grocer's pharmacies and will brand them as CVS Pharmacy. Additionally, CVS Pharmacy will acquire the prescription files from 11 Schnucks pharmacies and transfer them to nearby CVS Pharmacy locations.
This will not be the first time that CVS Pharmacy will operate its pharmacies in a store-within-a-store format. In December 2015, the company acquired Target's 1,672 pharmacies nationwide. (In addition, a CVS/pharmacy is included in all new Target stores that offer pharmacy services.)
CVS Pharmacy and Schnucks positioned the deal as a strategic move to bring together the established Midwestern grocer and CVS Pharmacy’s pharmacy services and clinical expertise. CVS Health noted that the agreement also provides it with a “capital-efficient” way to expand into key markets.
Founded in St. Louis in 1939, Schnuck Markets, Inc. is a third-generation, family-owned retailer operating 112 stores in Missouri, Illinois, Indiana, Wisconsin, and Iowa.
"We have great admiration for Schnucks and believe CVS Pharmacy can bring additional clinical services to its customers,” Jon Roberts, executive VP and COO, CVS Health. “One of CVS Health's strategic imperatives is to Be Local. By opening CVS Pharmacy locations within Schnucks stores, we're increasing access to high quality care and meeting customers where they are.”
The companies also highlighted their shared belief on not selling tobacco products. CVS Pharmacy stopped selling tobacco in 2014, while Schnucks stopped selling the category at the beginning of this year.
"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 CEO 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."
Once the deal is completed, Schnucks customers will have access to CVS Pharmacy’s various patient care programs, including health management opportunities, the CVS Pharmacy app and medication management via CVs Pharmacy ScriptPath Prescription Schedule.
CVS Pharmacy said that it would post all pharmacist and pharmacy technician positions and interview all Schnucks employees who apply. Changes will roll out over the course of several months following the completion of the transaction, which is expected to close by the end of the second quarter.
In 2014, CVS Pharmacy became the first and only major retail pharmacy to remove tobacco from its shelves. Schnucks stores became tobacco-free as of January 1, 2020. Schnucks' decision to exit tobacco further aligns the company with CVS Health.
“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.”
To provide continuity for Schnucks pharmacy customers, CVS Pharmacy will post all pharmacist and pharmacy technician positions, and will interview all Schnucks employees who apply. 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.
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.
Following completion of the transaction, all Schnucks pharmacy customers will have access to CVS Pharmacy's leading pharmacy care programs, features of which include:
• Opportunities for patients to manage their health with more ease and efficiency and gain access to programs that help them start and stay on their prescriptions while reducing overall health care costs. With the CVS Pharmacy app, patients can be notified when prescriptions are ready for pick-up and order refills digitally.
• Simplification of medication management for patients with multiple prescriptions, through the utilization of the CVS Pharmacy ScriptPath Prescription Schedule, a tool that provides a complete picture of the patient's current CVS Pharmacy prescription information all in one place, including the name of each medication, when to take it, and how much medication to take in each dose.
The transaction is expected to be completed by end of the second quarter and is subject to customary closing conditions.