CVS 1999 Annual Report Download - page 12

10
CVS Corporation
markets in the United States, yet we have no
retail stores in nearly half of those 100 markets.
As such, CVS is committed to entering at least
two to three new markets every year.
In 2000, we are entering Tampa, Florida,
the 13th largest drugstore market in the United
States, and Grand Rapids, Michigan, which is a
natural extension of our significant presence in
metropolitan Detroit. The movement into
Tampa is just the start of an aggressive expansion
program in Florida, an attractive market because
of its large population of older people and its
overall population growth.
We are relocating existing stores to new
sites where we know we can increase sales and
our return on investment. Freestanding stores
typically sell 25 to 30 percent more front store
merchandise than stores in shopping centers, yet
only 33 percent of our stores are in freestanding
locations. We expect to increase that to
approximately 80 percent over the next six
to seven years.
Online Solutions
With our 4,100 retail stores and our fast-
growing Web site at CVS.com, CVS enjoys the
advantage of being the first “clicks and mortar”
drugstore. We are well-positioned to be a leading
healthcare player on the Internet, with plans to
build the business that are both aggressive and
prudent.
At CVS.com, customers can order prescriptions
for pickup or mail delivery, order refills using
the Express Refills feature, and buy general
merchandise using a personalized shopping list
feature. They can receive the latest health news,
unparalleled general health information, and
even join a health community as a result of our
exclusive content agreement with Healtheon/
WebMD. They also can ask our pharmacists
questions and check for
potentially harmful drug
interactions as we create
one place for all their
healthcare needs.
CVS.com has thousands of high-quality,
over-the-counter medicines and general health
products available for purchase. Additional
offerings, such as greeting cards, beauty products,
seasonal goods and enhanced digital photo
services, will be available in the future.
With CVS.com, we can reach new markets
and new customers, expanding CVS as a
national pharmacy brand. And as we leverage
new technology throughout our business, the
possibilities for cross-selling and personalizing
services are numerous.
CVS.com represents a significant competitive
edge, because half of all pharmacy orders are for
in-store pickup. Our customers can get both their
chronic and acute health needs met any way
they find most convenient On the Corner (in our
4,100 conveniently located stores), On the Phone
(through our Rapid efill system), or On the Web.
And no matter which way a customer chooses,
the information is completely integrated to provide
a comprehensive drug utilization review and
ensure the best health outcome possible.
We see the Internet as a high potential channel
for CVS. We plan to capitalize on this opportunity
by leveraging the advantages of our 4,100 stores,
55 million customers, our advertising and
purchasing clout, our merchandising expertise,
strong third-party relationships, and especially
the trust of CVS/pharmacy.
With CVS.com, online customers can
choose to have their prescriptions mailed to their
homes from our fully automated mail service facility
or pick them up at their nearby CVS store.
With our 4,100 retail stores and our fast-growing Web site at CVS.com, CVS enjoys the