Target has signed a definitive agreement with the drugstore chain CVS Health. In a $1.9 billion deal, Target will sell its pharmacy and clinic business to the latter.

Conditions under the agreement include –

• CVS to rebrand and operate more than 1,600 pharmacies present within Target’s stores in 47 states.

• CVS will add ‘CVS/ pharmacy’ outlet to all new Target stores in which pharmacy services will be offered.

• Target’s 80 clinics will rebranded as MultiClinics and within three years, the count will be taken to 100.

• Both the companies will work in unison to come up with an updated format of Target Express. After the deal will be closed, Target will open around 10 such stores.

For now, it is not known as to when the deal will be closed. But it is expected that it will be done by the end of this year. The deal will prove beneficial for Target in terms of store traffic and also freed up resources.

Talking about CVS, the deal is in line with its plan of increasing its clinic count to 1,500 by 2017. There was a time when Target was known for its pocket-friendly fashion and home related merchandise. Since the time, it aggressively focused on groceries it lost focus on its fashion business.

With the deal, Target will be able to focus back on its fashion business. Under the new leadership, Target is now looking to consolidate its business, so that it can only focus on the most promising aspects.