Target to Sell Pharmacy Business to CVS -- What It Could Mean for Target

Updated from 9:27 a.m. with opening stock prices.

NEW YORK (TheStreet) -- The future of Target  (TGT) is unfolding under new CEO Brian Cornell, and that future could include relying more on other retailers.

On Monday, big box retailer Target announced it struck a deal with CVS Health (CVS) for CVS to acquire its pharmacy and clinic businesses for approximately $1.9 billion. Through this agreement, CVS Health will acquire Target's more than 1,660 pharmacies across 47 states and operate them through a store-within-a-store format, branded as CVS/pharmacy.

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In addition, a CVS/pharmacy will be included in all new Target stores that offer pharmacy services. Target's nearly 80 clinic locations will be rebranded as MinuteClinic.

Shares of Target were up 1.36% in early mornings trading, while shares of CVS were up 0.06%

"We believe this transaction presents a unique opportunity to partner with a best-in-class provider -- in a very complex space -- in which we are not well-positioned to be successful on our own," said a Target spokesperson in an email.

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