CVS 1998 Annual Report Download - page 13

ways to serve them, our tailoring of stores to local
tastes, our advanced technology, and our talented
people that drive our superior execution at retail.
Growth Through Store
Relocations and Urban Expansion
The relocation of existing stores to new
freestanding sites also represents a major growth
opportunity for CVS. We typically see a significant
increase in sales and profits when a store is moved
from an “in-line” site in a shopping center to a
freestanding format, as consumers use the store
differently. Currently, 23% of our store base is free-
standing. We believe the entire chain will ultimately
be comprised of 70-80% freestanding/convenience
locations. As a result, we will concentrate our new
store efforts on obtaining prime locations for
freestanding stores.
Expansion in key urban markets will also be a
priority. We have proven our ability to operate suc-
cessfully in markets such as Washington, D.C., and
Boston, and we see excellent potential in urban
areas that are underpenetrated, such as Philadelphia,
Cleveland and New York City. We have already
been expanding aggressively in New York City,
where we currently operate approximately 60
Freestanding CVS stores
offer increased conven-
ience for our customers,
and increased sales and
profitability. The reloca-
tion of existing stores to
new freestanding sites
represents a major
growth opportunity
for CVS.
stores. Our goal is to have 150-200 stores in the
city’s five boroughs within the next few years. As
part of this strategy, we acquired 16 well-located
stores from Thriftway Pharmacy in 1998. These
sites have already been converted to CVS stores and
are achieving strong results.
Caring About Our Communities;
CVS Associates Are Involved
The mission of CVS is to help people live
longer, healthier, happier lives. We strive to fulfill
this mission not only in the way we do business,
but also through our corporate contributions and
community involvement programs. Our charitable
giving activities demonstrate the core values of our
business: teamwork, openness, and willingness to
embrace change. Whether it’s a team of CVS volun-
teers walking to raise money for the American
Cancer Society, a pharmacist who spends time each
week at a housing facility for the elderly talking to
residents about drug interactions, or a market-wide
initiative to promote education and information to
first-time parents about child development, CVS is
reaching out to others.
In addition to developing health programs for
our customers and identifying nonprofit partners