CVS 2000 Annual Report Download - page 10

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Front-End Business
Unparalleled Convenience in the
Front Store
Today’s busy customers appreciate convenience.
Therefore, our strategy at CVS has been to find the
most convenient locations and to develop in the front
of our stores the best selection of merchandise to meet
our customers’ everyday needs.
Unique Products Exclusive to CVS
One of the ways that we create value for CVS cus-
tomers is by offering products and services that are
unique to CVS. Because of our size and scale, we are
able to forge partnerships with some of the nation’s
largest manufacturers to jointly develop merchandis-
ing strategies solely for CVS. For example, in 2000 we
teamed up with Procter & Gamble to launch grl>lab®,
an area in our stores featuring beauty, hair and other
accessory items that are relevant to teenage girls.
grl>lab will help us grow by reaching out to a whole
new group of convenience shoppers, who we hope
will remain loyal customers into their adult lives.
We tailor our stores to focus on key customer
segments. For example, we have a Women’s Health
Initiative focusing on the health needs of women with
specific conditions, such as diabetes or osteoporosis.
We also carry ethnic beauty products in certain mar-
kets. We further reinforce CVS’ convenience through
an accessible, easy-to-shop store format and our
extended hours.
Private label and controlled label products serve
as another important vehicle for differentiating CVS
from its drugstore and mass merchant competitors.
During 2000, we introduced a line of exclusive bath
and body products under the Essence of Beauty®
brand name.The early results demonstrate the gener-
ation of strong repeat purchases and customer traffic
in our stores; therefore we have already begun to
add new products to the Essence of Beauty line.
We also continue to register solid growth in
our CVS-brand products, which increased 7% and
represented 12% of our total front-store sales. We
Our new grl>lab area is designed to capture the attention of teenage girls by
offering beauty, hair and other accessory items in a fun and appealing environment.
The introduction of grl>lab is part of CVS' efforts to establish loyalty at an early
age by an important group of core customers.