CVS 2005 Annual Report Download - page 11

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2
A Leader in Exclusive Offerings
✛
9
Moms and dads have relied on the quality of
Playskool®brand toys for their kids for 75 years.
We’ve licensed this trusted name and will soon
introduce a line of diapers and other baby care
products that will be available exclusively in
CVS/pharmacy locations and through CVS.com.
The Playskool deal exemplifies CVS’ continued
expansion in CVS brand and exclusive products.
From the CVS Gold Emblem®line of quality
snack foods to Nuprin®pain relievers that can
only be found at CVS, CVS brand and exclusive
product sales increased by double digits in
2005. Today, they account for 13 percent of
front-store sales, and we believe that they have
the potential to grow significantly over the next
several years.
Of course, any increase means good news for
our bottom line. Along with the value and quality
they bring to customers, such products deliver
significantly higher margins than their branded
equivalents. CVS brand and exclusive products
have certainly been a factor in the ongoing
turnaround of the 1,100 stores we acquired in
2004. At those locations, such merchandise now
accounts for 12 percent of total sales, up from
8 percent just a year ago. Consumers are
already embracing some of our newest CVS
brand and exclusive offerings, including the Life
Fitness®line of vitamins and, in the beauty aisle,
Skin Effects®by Dr. Jeffrey Dover.