EXCLUSIVEBRANDSOURCING RETAILER/WHOLESALER ...

drugstores (7,271 with pharmacies) under the CVS Pharmacy banner in 41 states, plus in DC and
Puerto Rico. CVS claims a 19.5% share of the US retail prescription business. There also are 657
Minute Clinics (648 of them inside CVS stores), operating in 25 states and DC. The Caremark
portion of the business covers a network of more than 65,000 participating pharmacies (including
the CVS Pharmacy outlets), across 25 states and DC and including CVS’s 31 specialty pharmacy
stores, 12 specialty mail order pharmacies, and 4 mail service pharmacies. CVS Pharmacy stores
range in size from 8,000 to 25,000 square feet, while newer outlets range from 10,000 to 13,000
square feet, and feature drive-thru pharmacies. CVS is publicly traded: NYSE: CVS.
EB Identities: CVS, CVS Gold Emblem (premium foods, snacks, beverages), CVS Surf Club
(children’s swimming products), ‘b Just the Basics’ (value brand for household essentials: paper
towels, cleaning aids, beverages, snacks/cookies, beverages, diapers, personal care items, etc.),
Nuance Salma Hayek (skincare, cosmetics, haircare, and body care), Earth Essentials (natural and
environmentally friendly products), Down to Earth and Essence of Beauty (both bath and body
range), Blade (body wash), Lumene upscale Finnish skin care line; and the Cristophe Beverly
Hills hair care range; Skin Effects by Dr. Jeffrey Dover (cosmecueticals), Nuprin, Playskool, Life
Fitness, 24.7 (skin care).
EB skus: 4,400 + (E)
Profile: Calendar 2011 was a good year for CVS, especially its pharmacy revenues, which
represent 68.3% of its total volume. The company opened 161 new pharmacies, relocated 86 and
closed 16 units for a net gain of 145 stores in 2011. In 2009, the retailer began clustering its food
convenience offering, increasing consumable space in its stores to accommodate this change. It
continues to expand its grocery offering and to add fresh convenience foods for take-out.
Emphasis also has been placed on its private brands, including the rollout early in 2011 of its new
value line, ‘b Just the Basics. Addressing its weakest area in terms of share of store sales,
beauty/cosmetics products, taking 5.2% of total sales, CVS added a new exclusive beauty
collection, Nuance Salma Hayek in August 2011. The product range was developed in cooperation
with the actress, Sala Hayek. In November 2011, the company sold its Thera Com LLC subsidary,
involved in biotech and pharmaceutical support services, to AmerisourceBergen (also in this
database). In late October 2012, CVS Pharmacy, true to form, quietly rolled out another private
brand, Total Home, which on the surface looks like a consolidation of mostly general merchandise
and paper products. The new identity covers: disposable wipes, deodorizing products, light bulbs,
plastic cutlery, coffee filters, plastic cups, etc. This retailer continues to build its private brand
portfolio, which has been targeted to exceed 20% of front end sales in the near future.
UPDATE: For calendar 2012, CVS reported outperforming its expectations with net revenues up
by 15% to $123.1 billion; while its operating profit jumped 14.2% to $7.2 billion. CVS’ Pharmacy
Services business gained 24.7% to $73.4 billion and its Retail Pharmacy business advanced 6.8%
to $63.7 billion. The company closed the year with some 7,400 CVS/Pharmacy stores. In February
2013, CVS reportedly made its first venture outside the US, acquiring 44 Drogaria Onofre stores,
a private pharmacy chain, in Sao Paulo, Brazil.
Procurement Contacts: Jason Feingold, Director CVS Store Brands; Tom Sullivan, Category
Manager; Lanny Lewis, division Merchandise Manager; Michael Bloom, Sr. VP Merchandise;
Courtney Burton, Director of Private Label; Kris Kallembach, CVS Brand Marketing Manager;
Grant Pill, VP, Merchandise for Store Brands
DAIEI, INC., THE