Last Updated on 02/03/2021 by GS Staff
Q: Does Target own CVS Pharmacy?
No, Target does not own CVS. They are two separate businesses.
Target is a publically traded company that trades under the stock symbol (NYSE: TGT). The company is owned by shareholders with some of the major institutional holders being The Vanguard Group, State Street Corporation, Blackrock, and Bank of America.
While Target does not own CVS, its most well-known subsidiary is the grocery delivery service, Shipt. The company also owns over 40 private label brands which include Market Pantry, Archer Farms, Auden, and Original Use.
CVS is also publically traded and owned by numerous shareholders. It trades on the NYSE under the symbol CVS. It does have some similar institutional holders as Target such as The Vanguard Group, State Street Corporation, and Blackrock.
CVS Pharmacies at Target
CVS did acquire Target’s pharmacy business in 2015. They paid $1.9 billion to obtain about 1,670 pharmacies from Target. The deal allowed pharmacies to be placed in all new Target locations as well. The 2019 CVS Annual Report states that the company had approximately 1,725 retail pharmacies and 80 clinics in Target.
Future Target & CVS Merger?
The investing website Fool.com thinks that a merger between Target and CVS potential may happen in the future. The article cites recent business dealings that have brought the two companies closer together. In addition to CVS pharmacies being in Target, CVS now uses Target’s Shipt for same-day prescription delivery. Furthermore, Target has been opening small-format stores that are similar to CVS stores. The Fool.com author notes that it may be more prudent for Target to use existing CVS locations for this format expansion. Nevertheless, it is something to consider if you own or plan to own any shares in these companies.
