CVS 2002 Annual Report Download - page 8

6CVS Corporation
Making the Front Store “CVS Easy”
In the front of our stores, we are making it quicker and
easier for time-starved customers to get in, find what they
need and get on their way. That gives our customers more
time for other things they enjoy doing.
We have convenient, easy-to-access store locations that
are clean, neat, well-lit, and well-stocked—and more than 800
stores offer extended hours or 24-hour shopping. And we top it
off with outstanding customer service.
We are tailoring our offerings to the needs of each
neighborhood we serve—like sandwiches and salads for busy lunchtime
crowds in downtown Chicago, and luggage for tourists in Las Vegas.
ExtraCare for Customers
The backbone of our growth strategy in the front of our stores is the CVS
ExtraCare card, which is helping us continue to build our loyal customer base. With
33 million members, it is the largest and most successful retail loyalty program in
the United States. It has become a clear competitive
advantage for CVS, enabling us to develop superior
consumer insights. ExtraCare also gives us the
unique ability to balance mass and targeted
marketing so we can amply reward our best
customers.
The ExtraCare card provides many benefits to CVS customers, including
automatic store sale prices; customized coupons targeted toward their interests;
ExtraBucksTM rewards; health information; and more. ExtraCare transactions
represent more than half of our sales in the front store, while
cardholders shop CVS more often and spend more per visit than
non-cardholders.
Personalization is the key to ExtraCare’s success. The wealth
of information captured through ExtraCare enables us to market
and merchandise the front store in a way that better provides
what customers want, which ultimately will drive sales and
deliver even more profitable business results.
ExtraCare also forms win-win relationships between CVS
and our supplier partners. They benefit from the success of the
program as well, and we leverage that success to differentiate
ourselves from other retailers.
We continue to make new enhancements to the ExtraCare
program, offering customers even more enticements and rewards such
as clipless coupons and ExtraBucks delivery at the register.
Growing our Market Share
We are seeing promising gains in
market share. According to ACNielsen
data, we gained share in 2002 in 42 of
our 47 front-end categories. All our
major business lines, such as over-the-
counter drugs, beauty products, and
general and seasonal merchandise, are
gaining share.
CVS’ innovative approach
to the photo business has
enabled us to grow market share
at the expense of competitors.
Making it easy to get what you need.
CVS colleagues
serve approximately
900 million
customers
per year.
With 33 million
members, ExtraCare
is the most
successful retail
loyalty program
in America.
Life to the fullest.
SM