Retailers to ramp up coronavirus testing to help loosen lockdowns, but caution theyll need supplies

As some states start to reopen businesses and lift lockdowns, the need for testing has become a focal point and retailers are touting renewed efforts to speed that along.

CVS Health, Walgreens, Walmart, Rite Aid and Kroger are among the companies that joined President Donald Trump late Monday at the White House to announce the next phase of coronavirus testing. The company’s leaders spoke at the podium in the Rose Garden about their plans to add new sites and increase access, especially in underserved communities and among employers trying to get back to work.

The companies laid out plans to open additional sites — but some cautioned their timing and ability to ramp-up will depend on having adequate supplies and lab capacity.

Some state governors have expressed frustration about not having the swabs, reagents or lab capacity they need to increase testing, so they can better track the spread of the coronavirus and decide how to reopen their states. In the U.S., there have been more than 972,900 confirmed cases of Covid-19 and at least 55,118 people have died, according to data compiled by Johns Hopkins University.

CVS said Monday that it plans to expand coronavirus testing to nearly 1,000 locations across the country by the end of May and process up to 1.5 million test per month. Walgreens said it plans to open testing sites in 49 U.S. states and Puerto Rico. Walmart and Kroger also announced plans to open additional testing sites. 

A group of retailers and health-care companies had a similar meeting with Trump in mid-March. At a March 13 event in the Rose Garden, Walmart CEO Doug McMillon, Target CEO Brian Cornell and other executives spoke at the event. Walmart, Target, Walgreens and CVS committed to hosting numerous drive-thru test sites in parking lots across the country.

More than six weeks later, those retailers have opened only a few dozen locations. Walmart has 20 testing sites, according to a map on its website. Walgreens has 18 locations across 11 states. CVS has a total of five sites across five states. Target has not opened any.

Target will not be attending Monday’s White House event, a company spokeswoman said. She said the company is still committed to offering its space for testing, but the retailer does not have medical personnel to run the testing. Its pharmacies are owned by CVS.

In a call with reporters in mid-March, Walmart’s Executive Vice President of Corporate Affairs Dan Bartlett said the opening of more test sites has been delayed by supply issues. He said Walmart struggled to get test kits and find masks, gloves and other personal protective gear for workers.

Walgreens said expects to open five more drive-thru testing locations in four more states this week. It currently has 18 sites in 11 states. 

It did not announce a timetable for the broader expansion of Covid-19 testing, saying in a news release that “the scale and timing of the overall testing expansion is dependent on the availability of tests and overall lab capacity.” It said it is working with LabCorp to increase its testing capacity and eventually expects to test more than 50,000 people each week.

On Monday, it said it began to offer antibody testing at more than 100 different Walgreens stores, which have LabCorp locations. The blood test can help detect whether a person has been exposed to the virus.

CVS Chief Executive Larry Merlo attended Monday’s White House event. In late March, Merlo told CNBC that a lack of protective gear has slowed the effort.

CVS has a total of five testing sites in five different states: Connecticut, Georgia, Massachusetts, Michigan and Rhode Island. Most of the sites can do 1,000 tests per day. They are operated by CVS staff and located in large parking lots with enough space for multiple lanes, such as on Georgia Tech’s campus in Atlanta and at Twin Rivers Casino near Providence, Rhode Island. They are using Abbott Laboratories‘ rapid testing device, which allows patients to get test results in minutes.

In the news release Monday, CVS said the new locations will be in parking lots or at drive-thru windows near its stores. It said people will have to meet the criteria of the Centers for Disease Control and Prevention. The testing will be by appointment only.

CVS said it’s developing mobile solutions to bring more testing to minority communities, which have been hard-hit by the coronavirus. It said those mobile options could also be used by businesses to help them reopen.

“Our industry has been united by the unique role we can play in addressing the pandemic and protecting people’s health,” Merlo said in the news release. “We all share the same goal, and that’s dramatically increasing the frequency and efficiency of testing so we can slow the spread of the virus and start to responsibly reopen the economy when experts tell us it’s safe.”