CVS is buying Target’s pharmacy business for $1.9 billion.
The deal means the discount retailer’s 1,660 pharmacy locations will become CVS-branded units.
CVS’ acquisition could set off a series of similar deals as cost pressures hurt profits at grocery-store pharmacies, Reuters reports.
“Target pharmacies helped drive overall sales at the chain but lost money, as the government healthcare program known as Obamacare expanded ranks of insured and increased pressure on cost,” Reuters writes.
While outsourcing operations to CVS could help the bottom line at companies, it could be bad news for consumers.
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