CVS 2000 Annual Report Download - page 12

Download and view the complete annual report

Please find page 12 of the 2000 CVS annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 44

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44

Innovative Technology to
Improve Efficiency
Consistent with other areas of our business, we
are investing in technology to improve efficiency and
maximize performance in our front-store operations.
Computer-assisted ordering is lowering inventory
levels in selected categories, and we are testing ven-
dor-managed inventory programs with key over-the-
counter and prescription suppliers. We believe that
the reduction of inventory levels will accelerate our
ability to reach our return on invested capital goals.
In addition, we are continuing to reap the benefits of
our Promotional forecasting and allocation system,
which helps reduce promotional out-of-stocks, increase
sales and reduce seasonal residual inventories. After
a pilot test in more than 30 stores, we are also rolling
out an improved store-level system, Assisted Inventory
Management, or AIM, which we believe will signifi-
cantly reduce out-of-stocks, drive sales and improve
inventory productivity.
New Store Growth Program
Real Estate Strategy
The location and expansion of our store base are
critical components of CVS’ success. We place a high
priority on both the quality of the markets we enter
and the sites we select. We focus on three key strate-
gies: 1) entering new markets, 2) adding stores within
existing markets, and 3) relocating stores to more con-
venient, freestanding sites. During 2000, we opened
a total of 388 stores, including new stores, relocations
and ProCare apothecaries.
Through sophisticated analysis that includes
extensive market research and the use of proprietary
CVS software systems, our CVS Realty team is able to
identify the prime locations for our stores, right down
to a specific corner at an intersection. We take advan-
tage of statistical and in-the-field research, as well as
our own spatial modeling software, to reach impor-
tant conclusions about the various demographic and
other factors that drive growth in our stores. As a
…and convenient…
“We place a high
priority on selecting
prime locations,
which offer our
customers convenient
access to CVS and
generate strong sales.”
Our new Tampa store represents entry into a
high-growth market that capitalizes on the Company's
name recognition among the thousands of people
who have migrated from current CVS markets.
10
CVS Corporation