No, Target does not own CVS. Instead, it is the opposite: CVS Health acquired Target's pharmacy and clinic businesses, establishing a unique partnership where CVS pharmacies now operate inside Target stores.
Understanding the CVS and Target Partnership
While customers commonly see CVS pharmacies within Target retail locations, this is a result of a major business transaction that occurred several years ago, not an indication that Target owns CVS.
The Acquisition Explained
- Year of Acquisition: In 2015, CVS Health purchased Target's pharmacy business.
- Acquisition Value: The transaction was valued at approximately $1.9 billion. This significant investment allowed CVS to rapidly expand its retail pharmacy presence.
- Strategic Expansion: By acquiring Target's pharmacies, CVS integrated these locations into its extensive network, enhancing its accessibility for consumers nationwide.
CVS's Presence in Target Stores
Following the acquisition, CVS transformed the pharmacy operations within Target stores, bringing its brand and services to a new customer base.
- Operational Footprint: Currently, CVS operates approximately 1,800 pharmacies located inside Target's 1,950 US locations. This means a substantial majority of Target stores now feature a CVS pharmacy.
- Wider Reach: It's important to note that CVS Health has a much larger overall presence, managing about 9,000 pharmacy locations overall across the country, making its operations within Target a part of its broader network.
Key Aspects of the Relationship
The partnership allows Target to offer essential pharmacy services to its shoppers without directly managing the complexities of a healthcare operation, while CVS benefits from increased market penetration and access to Target's customer traffic.
| Entity | Primary Role in Partnership | Key Contribution/Relationship |
|---|---|---|
| CVS Health | Acquirer of Pharmacy Business | Owns and operates the pharmacies inside Target stores. |
| Target Corp. | Host of CVS Pharmacy Locations | Sold its pharmacy division to CVS Health. |
This arrangement underscores a strategic alliance where two distinct corporations collaborate to provide integrated retail and healthcare services to consumers.
