Market Overview

How CVS Wants To Be Less Like A Pharmacy Chain And More Like Amazon

Share:
How CVS Wants To Be Less Like A Pharmacy Chain And More Like Amazon

CVS Health Corp (NYSE: CVS) has a plan to be viewed less as a pharmacy chain and more like Amazon.com, Inc. (NASDAQ: AMZN) by selling annual memberships with free shipping.

CVS has been testing a membership program called CarePass in Boston and the company is now ready to expand the initiative nationwide. For an annual cost of $5 per month or $48 per year, consumers can receive free delivery on discounted CVS-branded items and prescription drugs. Other perks include a monthly $10 coupon and an exclusive hotline for pharmacy related questions.

Why It's Important

CVS wants to target millennials in its program and early results in Boston showed signs of success as 20% of users were born between 1981 and 1996. The millennial demographic is described as "time-starved" and CVS wants to make it "easier to do business" with the group, CVS Pharmacy President Kevin Hourican told CNBC.

"We think this program extends the convenience advantage," the executive told CNBC. "We are a very convenient shopping location because of our footprint, and this expands our convenience one step further."

CarePass pilot members spent on average 15% to 20% more at CVS than they otherwise would have. The higher level of sales more than offset shipping and promotions associated with the feature and investors will likely be looking for signs of success in future earnings reports.

CVS Health's stock traded around $55 per share Monday morning.

Related Links:

The State Of CBD Regulation: Clear Rules Or Consumers At Risk?

Trump Administration Withdraws Drug Rebate Plan

Photo courtesy of CVS Health.

Posted-In: CarePass Kevin Hourican pharmacy retailersNews Retail Sales Top Stories Media Best of Benzinga

 

Related Articles (AMZN + CVS)

View Comments and Join the Discussion!
Fastest Market News Application
You'll Hear It First On Pro
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Trading Daily
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com

What Caused The Opening Gap In Allakos?

Eyegate Pharmaceuticals Receives FDA Approval To Begin PE Pilot Study