CVS 2001 Annual Report Download - page 10

Our prescriptio n fo r real estate expansio n is
fo cused o n new, high-gro wth markets. Of the to p 100
drugsto re markets in the United States, we o perate in
60. That leaves 40 new markets to enter that offer us
excellent gro wth o pportunities.
In essence, we’re go ing where the peo ple are
go ing. Where there is significant po pulatio n gro wth
o ccurring, there is significant o ppo rtunity in retail
pharmacy. That’s where we plan to be.
Custo mers in Ft. Lauderdale, Tampa, Orlando,
Miami, Chicago , Las Vegas, and parts o f Texas are just
getting their first taste o f what it’s like to sho p at a
CVS/ pharmacy. So far, they appear to like what they see.
Custo mer traffic is stro ng, feedback is highly
po sitive, and sales are exceeding o ur expectatio ns.
In surveys, c usto mers of these new sto res are giving
very high marks fo r our critical service measures—
in- sto ck availability o f merc handise, the sho ppability
of o ur stores, and quick, perso nal service. To date
o ur new sto res in new markets are demo nstrating
stro ng results, o ffering great cause fo r optimism fo r
the future.
New Market s, New Opportunities
In 2001, we o pened 43 sto res in new CVS
markets. That includes 17 stores in Chicago ; 17 in
Flo rida; 6 in the Dallas, Ft. Wo rth and Ho uston
areas of Texas; and 3 in Las Vegas.
These markets have been identified as amo ng the
fastest gro wing drugsto re markets in the United
States because they are experiencing significant
po pulatio n gro wth. No t surprisingly, many o f these
areas also have high co ncentratio ns o f senio r
citizens, who acco unt fo r a significant and gro wing
share of the prescriptio n drug business.
Las Vegas, fo r example, is the 38th largest
drugsto re market. Las Vegas is pro jected to
experience 58% growth in prescriptio n usage o ver
the next five years, and we intend to seize o ur share
of that gro wth.
In 2002, we plan to o pen appro ximately 75
mo re new-market sto res in the territo ries we’ve
already anno unced. Over the lo ng term, we expect to
o pen hundreds of additio nal sto res in these high-
po tential markets, as well as in additio nal new
markets we are explo ring.
At the same time, we remain co mmitted to new
sto res and relo catio ns in o ur existing stro ngho ld
territo ries to assure we o ffer custo mers cho ice,
co nvenient lo catio ns wherever we do business.
Pict ured is our new st ore in Houst on, Texas, a new market
for CVS that offers excellent growt h opportunit ies.
Our new sto res in
A Strategy For Real
CVS Corporation
8
We continue to find out st anding opportunities
for growt h in exist ing market s. Our new locat ion
near Citicorp Center in New York City is expected
to be a high volume st ore.