CVS 2002 Annual Report Download - page 10

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8CVS Corporation
We will open
250-275 new
stores in 2003,
80-100 in new
markets.
Making it easy to access our stores.
Location is Key
An integral part of what makes CVS the easiest
drugstore for our customers to use is our convenient
locations.
We know where to open new stores in our existing
markets. We know which stores will be more successful
when relocated. And we know how to add stores in
the new, high-growth
markets CVS is penetrating.
We continue to pursue this
strategy with great success.
While U.S. pharmacy
sales are expected to grow
11% to 14% annually, the
number of pharmacy
outlets is expected to
increase by only 3% to 4%
over the next 5 years. That
leaves significant space for
CVS to open new stores to
meet the expected growth
in demand.
New Store Strategy
For 2003, we plan to open 250-275 new stores,
about 80-100 of which will be in our new markets. We
are targeting growth in our overall square footage of
approximately 4% to 5% each year.
With the expected relocations and new store
openings, approximately 52% of our stores will be
freestanding by year-end 2003, compared with 47% at
the end of 2002. This is good news for consumers
looking for convenience because our customers have
told us that freestanding stores with dedicated parking
are easier to access, so they shop them more frequently.
New Markets for Growth
We are optimistic about the new markets that we
have been entering since late 2000. These areas include
parts of Florida (Orlando, Tampa, Miami, Ft. Lauderdale,
West Palm Beach, and Jacksonville) and Texas (Houston
and Dallas/Ft. Worth), as well as Phoenix, Chicago and
Las Vegas. We already have 125 stores in these markets,
and the results so far are very promising.
Aggressive relocations
continue in core CVS
markets, including
this Providence, R.I.,
relocation. The store
features bilingual
employees, signs, and
pharmacy services
to better serve the
local Hispanic
population.