CVS 2000 Annual Report Download - page 14

Download and view the complete annual report

Please find page 14 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

natural extension from our #1 position in Detroit, the
4th largest drugstore market. Since our acquisition
of Michigan-based Arbor Drugs, Inc. in 1998, we have
reinforced and built upon our presence in this highly
attractive market.
Economic Lift from Relocations
Store relocations, the third leg of our real estate
strategy, are highly productive investments for CVS.
When we relocate a store from an inline shopping
center to a freestanding, convenient corner location,
we typically generate 25% to 35% higher front-end
sales, improved margins and a better return on invest-
ed capital than the stores they replace. The new sites,
which are in higher-profile locations with convenient
parking, have more appeal to consumers. Today, nearly
40% of our stores are in freestanding locations. Our
goal over the next five to seven years is to reach 80%.
Although the number of relocations will decrease over
time, our relocation strategy will remain an important
component of our overall growth strategy.
CVS Procare
America’s #1 Specialty Pharmacy:
CVS ProCare
During 2000, we solidified CVS’ position as the
leading provider of specialty pharmacy services
through our CVS ProCare subsidiary. We now operate
46 ProCare apothecaries in 18 urban markets across
the U.S., and, with our September 2000 acquisition of
Stadtlander Pharmacy, we have established ProCare
as the largest specialty mail order pharmacy in the
nation. Importantly, we are the only specialty phar-
macy provider offering integrated retail and mail
order services.
We launched ProCare with the objective of
providing a pharmacy resource uniquely focused
on serving patients with chronic conditions, such as
HIV/AIDS, organ transplants, infertility, multiple scle-
rosis and cancer. Estimated at $14 billion in size today,
the specialty pharmacy market is growing at an annual
rate of 20%, with much of this growth being driven by
medical advancements.
ProCare pharmacists are active patient advocates and partner with physicians, pharmaceutical
manufacturers and other healthcare providers to offer in-depth patient treatment and counseling services.