CVS 2000 Annual Report Download - page 5

Download and view the complete annual report

Please find page 5 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

driven by the introduction of new drugs and
the aging American population. We contin-
ue to capture an increasing share of this
expanding market.
Our front-end business also continues
to thrive, achieving broad-based category
growth.We gained market share in all core
categories, including photo, skin care,
hair care, candy, cold and stomach reme-
dies, diet/nutrition and cosmetics. Our
unique photo offerings, which integrate
our in-store photo processing business
with digital uploads onto the Kodak
Picture Center® at CVS.com, have gen-
erated excellent results. In 2000, we
became the #1 online photo provider
in the U.S.
We are very enthusiastic about
the benefits we can derive from
greater customer loyalty through our
new relationship marketing program, ExtraCare®. We recently rolled out our ExtraCare
card chainwide and expect to create superior value for our customers, unmatched by
competitors’ programs.
Growing by Remaining Focused on Our Vision
To achieve our objective of being the most customer-focused, innovative and con-
venient healthcare retailer in America, we have concentrated our efforts on building
our presence in the nation’s top drugstore markets.We have added our traditional CVS/
pharmacy stores, through organic growth or strategic acquisitions, and developed new
channels, such as ProCare and CVS.com, to meet the needs of all our customers.
CVS currently enjoys the #1 or #2 market share in 75% of the top markets in which
we operate. We have a presence in 59 of the top 100 U.S. drugstore markets, which
leaves 41 of the top 100 markets for CVS’possible expansion, many of which are under-
served and offer tremendous potential.
During 2000, we opened or relocated 388 stores. These included new CVS and
ProCare stores in current and new markets as well as relocations of existing units to more
convenient sites. We also took advantage of opportunities to expand into markets that
we identified as having strong fundamentals for drugstores. We recently entered the
Chicago market, currently the 2nd largest drugstore market in the U.S., and we
launched an aggressive expansion into several Florida markets, beginning with Tampa,
the 16th largest drugstore market, and Orlando, the 27th largest. In February 2001 we
announced plans to build CVS/pharmacy stores in two of the fastest-growing drugstore
Thomas M. Ryan Chairman of the Board,
President and Chief Executive Officer
3
2000 Annual Report