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2006 Annual Report 13
CVS is the nation’s No.1 drugstore chain by store count, and our latest acquisition has
propelled us to leadership positions in fast-growing Southern California markets.
It’s easier than ever to find a CVS/pharmacy these days. That’s because we’ve added some 2,000 locations over the past three
years through a combination of organic growth and well-chosen acquisitions. With approximately 6,200 locations from coast to
coast, we now operate more stores than any other U.S. drugstore chain. More than 60 percent are freestanding, making it “CVS
easy” for customers to fill prescriptions, pick up some LifeFitness® vitamins, or just grab a pint of their favorite ice cream.
Our 2006 acquisition of approximately 700 standalone Sav-on and Osco drugstores propelled CVS to leadership positions
throughout fast-growing Southern California and strengthened our presence in the Midwest. At the same time, our organic
growth continued apace in key growth markets such as Chicago, Las Vegas, Minneapolis, and Phoenix. The combination of
organic growth and acquisition added a hefty 23 percent to our retail square footage in 2006.
We’ve rapidly integrated the former Sav-on and Osco
locations, with the final store conversion scheduled for
March 2007. Of course, we know a thing or two about
making the most of an acquisition. With our 2004 pur-
chase of approximately 1,200 former Eckerd stores –
mainly in Florida and Texas – we seized on a significant
opportunity to drive top-line growth, improve margins,
and reduce inventory shrinkage. These stores have since
delivered impressive results, and we expect them to
continue outperforming our core business as we leverage
a long-term turnaround opportunity.
More CVS/pharmacy locations are on the way. We plan to
open 275 new or relocated stores in 2007, adding another
3 percent to our total retail square footage.
CVS/pharmacy Markets PharmaCare Specialty Pharmacy Stores