While CVS/pharmacy’s store clustering initiatives and store brands are fueling front-store profitability, there’s no doubt that its successful, long-standing ExtraCare loyalty program remains a key driver of front-store sales, and it arms the company with a powerful competitive advantage, especially as CVS looks to take the program to new heights.
With healthcare reform on track to bring 32 million more Americans into the healthcare system in 2014, and with payers and patients looking for solutions to curb costs as the nation battles a shortage of primary care physicians and access to quality care, CVS Caremark’s role in reinventing pharmacy through its distinctive business model couldn’t be more imperative than it is today.
The way Walgreens is deploying technology through its stores may be futuristic, but it is no science fiction. It’s real innovation that is helping to drive its total transformation along so many areas of its business — and it’s being produced in real-time.
What product she wants. Where she wants the product. When she wants the product. Delivering on those promises is what multichannel retailing means to Walgreens. “We believe consumers want choice,” noted Sona Chawla, Walgreens’ president of e-commerce. “People will shop online one day, [and] they’ll shop the store the next day; it depends upon events and what they’re looking for.”
When Walgreens snapped up Manhattan-based retailer Duane Reade back in 2010, it was a significant move for the Deerfield, Ill.-based pharmacy giant as it gave Walgreens — essentially overnight — a leading presence in New York City.
The power of local times 8,000. That’s perhaps one of the most significant transformative tools possessed by Walgreens, which over the past three years has moved to empower its local operators to leverage corporate assets in a single mission to win in each of the markets it serves.