CVS Pharmacies Open in Target Stores
Target has started the process of transforming its in-store pharmacies and health clinics to CVS Pharmacies and Minute Clinics. The first of the new store-within-a-store concepts opened in the Charlotte, NC, market last week. This much anticipated arrangement brings together two leading retailers.
CVS Health announced the deal to acquire all Target Corporation’s pharmacies and retail clinics last June. The leading drug retailer completed the acquisition in December 2015 giving it a retail presence in every state except Wyoming. CVS Health is paying $20 to $25 million in rent annually to utilize the space at Target stores.
Target and CVS employees will spend the next six to eight months converting all of Target’s 1,672 pharmacies and 79 clinics. The conversions, funded by CVS Health, include converting systems and technologies, and rebranding the space. As with other major department changes at Target, the transition will occur overnight and open the following day as a CVS branded pharmacy or clinic.
Target customers will soon see CVS branded signage throughout the store, including on the outside of the building. There will be a few cosmetic changes to the area as well such as new prescription bottles, blue scrubs for technicians, and lab coats sporting the CVS brand for pharmacists. Patient records and prescriptions have been transferred from Target to CVS already. The loyalty program for Target’s Pharmacy has been discontinued, and patients are encouraged to use CVS’ ExtraCare program.
According to Chain Store Guide’s database of Drug Stores & HBC Chains, CVS Health is the largest U.S. drug store chain based on total locations and total sales. The company opened 53 new retail stores and acquired over 1,670 pharmacies from Target to end the year with 9,655 locations. CVS Health recently reported a 10% increase in annual sales from 2014 to 2015.