Is CVS Owned by Target? A Comprehensive Look at the Two Retail Giants

CVS and Target are among the most ubiquitous retailers in America today. With tens of thousands of locations combined, the two chains can be found anchoring shopping centers and street corners across the country. But does this mean they are part of the same corporate family?

Despite some notable partnerships in recent years, CVS and Target remain distinctly separate companies with unique histories and divergent business strategies. Read on for an in-depth look at the relationship between the pharmacy and discount retail powerhouses.

Introducing CVS Health and Target Corporation

Before exploring if and how CVS and Target are connected, let’s quickly introduce the two retail giants.

The History and Scope of CVS Health

CVS Health has grown from its humble beginnings in 1963 as a regional chain of health and beauty aid stores into one of the largest pharmacy healthcare companies in the United States. Key facts about CVS:

• Originally founded as Consumer Value Stores based in Lowell, MA

• Rebranded as CVS/pharmacy in 1996 as it expanded into pharmaceuticals

• Operates almost 10,000 retail pharmacy locations across 49 states

• Manages pharmacy benefits for over 92 million plan members

• Owns Caremark and Aetna, providing a range of health services and insurance plans

• Generated over $292 billion in total revenues in 2021

• Employs approximately 300,000 people, making it a Fortune 5 company

Key Facts on Mass Merchandise Retailer Target

Target Corporation has its own distinct history that diverges sharply from CVS Health. Details on Target:

• Founded in 1902 as Dayton Dry Goods Co. in Minneapolis, Minnesota

• Evolved into a discount “mass merchandise” retail chain selling a broad array of consumer goods

• Operates approximately 1,900 stores across all 50 states

• Focuses on younger, trendier demographics than direct rivals like Walmart

• Generated over $106 billion in total revenue in 2021

• Employs over 450,000 team members nationwide

So while both are dominant forces in retail today, CVS and Target took very different paths to get there based on their underlying business models.

Did Target Corporation Ever Own or Acquire CVS?

Given their scale and retail footprint, some people mistakenly believe Target and CVS must be part of the same corporation. However, Target has never outright acquired or owned CVS.

Here are some key facts on the real relationship between the two brands:

• Both companies have always operated fully independently, competing in some segments.

• In December 2015, CVS Health and Target did announce a strategic partnership involving their pharmacy operations.

• As part of this deal, Target sold its in-store pharmacies and clinics to CVS Health for approximately $1.9 billion.

• CVS Health now operates these pharmacies inside Target stores, rebranded as CVS.

So Target collected a substantial payout by selling its pharmacies to CVS, but the core corporation remained completely separate. Target itself does not hold any ownership stake in CVS Health.

What Prompted CVS and Target to Partner on Pharmacy Services?

CVS Health and Target had different motivations for linking up on in-store pharmacies.

For Target, the partnership supported its strategic focus on segments like beauty, home, and wellness products. Partnering with pharmacy veteran CVS bolstered Target’s services and reputation in the health and wellness space.

More specifically, benefits for Target included:

• Monetizing an asset in its pharmacies to receive an influx of cash

• Accessing CVS’ operational expertise in running cost-effective, scalable pharmacy networks

• Letting CVS absorb the compliance requirements and regulations of pharmacy management

• Expanding beauty and wellness offerings to drive traffic and sales

For CVS Health, the calculus was equally compelling:

• Gained retail floor space through ~1,600 pharmacies inside busy Target locations

• Added customer access points through Target’s millions of loyal shoppers

• Drove prescription volume through existing Target pharmacy relationships

• Boosted health services by acquiring Target Clinic acute care locations

• Expanded presence in pharmacy deserts lacking CVS locations

Ultimately, it was a win-win partnership to leverage each company’s core competencies and customer bases.

How Does This CVS-Target Deal Compare to the CVS-Aetna Megamerger?

In late 2018, CVS Health cemented another industry-rocking deal by acquiring health insurance giant Aetna for an enormous $69 billion price tag. This brought together CVS’ extensive pharmacy services and retail footprint with Aetna’s health insurance plans and 22 million medical members.

Some key differences between these deals:

• Scope: CVS-Target was for a specific pharmacy business line; CVS-Aetna merged entire corporations.

• Integration: CVS operates Target pharmacies but Target and CVS remain fully separate; CVS-Aetna now combine health services.

• Goals: CVS-Target expands retail presence; CVS-Aetna aims to lower costs and improve coordination in healthcare.

• Regulatory scrutiny: CVS-Target cleared quickly; CVS-Aetna underwent an extensive, year-long antitrust review.

So the Aetna acquisition was a far more radical consolidation between previously separate players in the healthcare ecosystem. This kind of megamerger is accelerating vertical integration across healthcare as providers, insurers, and pharmacies converge.

How Do CVS and Walgreens Compare in Terms of Ownership?

CVS and Walgreens have been entrenched rivals in retail pharmacy for decades. While they were once mom-and-pop drugstore chains, they now dominate the pharmacy landscape. But what about their corporate structure?

The key facts:

• Walgreens is owned by Walgreens Boots Alliance, based in Illinois.

• CVS Health operates independently out of Rhode Island.

• The two have always functioned as totally separate public companies.

• They compete fiercely for pharmacy market share and reimbursement rates.

• Consolidation has strengthened these pharmacies against external threats.

Recently, private equity has shown more interest in acquiring pharmacy chains like Walgreens. But for now, CVS and Walgreen operate autonomously under different corporate ownership.

Who Ultimately Controls and Owns CVS Health?

Publicly traded companies like CVS Health have diffuse ownership across countless shareholders. But a few major entities do stand out:

• CVS Health Corp remains the largest single shareholder with 2.07 billion shares or approximately 15.5% ownership.

• The Vanguard Group is a major shareholder of CVS with a 7.4% ownership stake through various investment funds.

• BlackRock Inc. owns 6.7% of CVS shares, making it one of the largest institutional investors.

• No other individual, corporation, or investor owns over 5% of CVS Health shares.

So between its own sizable share holdings and diversified public ownership, CVS Health operates independently without a single controlling owner or entity.

Checking CVS Availability and Locations in My State

Given its position as America’s leading pharmacy services provider, CVS Health has a broad national footprint. It operates pharmacies in 49 states currently.

Some quick facts on CVS locations:

• CVS has over 9,900 pharmacy locations across the country.

• California, Texas, Florida and New York have the most CVS stores with over 800 locations each.

• The chain has a strong presence across northeastern states like Pennsylvania, New Jersey and Massachusetts.

• Alaska is the only state without any CVS pharmacies.

To check availability near you, visit the CVS store locator and enter your zip code or city and state. This will provide names, addresses, and distances for nearby CVS pharmacy locations.

Have Any CVS Stores Near Me Closed Recently?

During COVID-19, temporary pharmacy closures became more common across chains like CVS and Walgreens when staff members tested positive. However, widespread permanent closures have not been announced.

As of late 2022, most CVS pharmacy locations have resumed regular opening hours. Some safety protocols may remain in effect due to local regulations, but closures are not expected.

If you have concerns about your nearby pharmacy location, it’s best to call the store directly or check its hours online through the CVS store locator. This provides real-time opening and closing information.

Which Cities Have the Most CVS Pharmacies?

Given CVS Health’s nearly 10,000 pharmacies nationwide, it tends to have very high retail density in major metropolitan areas.

Some U.S. cities with the most CVS locations include:

• New York City, NY: Over 240 locations
• Los Angeles, CA: More than 200 locations
• Chicago, IL: Around 160 CVS stores
• Houston, TX: Approximately 125 CVS pharmacies
• Philadelphia PA: More than 110 locations
• Phoenix, AZ: Over 100 CVS stores

Brooklyn, the most populous of New York’s boroughs, has around 50 CVS pharmacies of its own. You can check your area’s specific CVS count using the company’s online pharmacy locator.

The Bottom Line

While CVS Health and Target forged an important retail pharmacy partnership starting in 2015, the two companies continue to operate independently. Target Corporation is not a subsidiary of CVS or owned by the pharmacy giant.

CVS Health itself is owned by public shareholders, with top stakes from Vanguard and BlackRock. It competes national with pharmacy chains like Walgreens and Walmart, now as a diversified health services company after major acquisitions.

So the next time you spot a CVS pharmacy inside a Target store, remember—those powerhouse brands are working together, but are still two separate retail empires.