CVS 2006 Annual Report Download - page 11

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8 CVS Corporation
A selection of exclusive and leading brands, coupled with
the benefits of our ExtraCare card, helped drive industry-
leading same store sales growth in the front of the store.
Stroll the aisles of a CVS/pharmacy and you will find a collection of exceptional brands
not available at any other drugstore in the United States. In addition to our extensive
line of over-the-counter medications and first aid items, they include skin care products
in the beauty aisle from Lumene®, Avène®, and Vichy® as well as Essence of Beauty®
and Skin Effects by Dr. Jeffrey Dover®. For new parents, we recently introduced a line
of diapers, wipes, and other baby care products under the trusted Playskool® brand.
Of course, CVS Gold Emblem® snack foods have become a popular choice for children’s
lunchboxes and the mid-day repast. Shoppers value such brands because they offer
great quality at an affordable price. They also allow us to reap significantly higher
margins in the front of the store. With CVS brand and exclusive products rising to
14 percent of front-store sales in 2006, that meant good news for our bottom line.
Along with our exclusive offerings, customers will find a complete selection of leading
beauty, health, and personal care brands throughout the front of the store. Shoppers
love choice, and it’s one of the ways we make our stores “CVS easy.” Customers also
appreciate our in-store beauty advisors, digital photo labs, and the benefits of our
ExtraCare loyalty program. By using the ExtraCare card with every purchase, shoppers
take advantage of in-store sales while avoiding the hassle of clipping coupons. More-
over, cardholders receive ExtraBucks every quarter with their store receipts based on
their purchases. Just like cash, ExtraBucks can be used for any front-end purchase.
In the front of the store, CVS topped the chain drugstore industry in 2006 with same
store sales growth of 6.2 percent.