I only know of CVS because I travel to the East Coast on a regular basis. In the major metropolitan areas I found that "CVS" was used interchangeably with the more generic "drugstore." There is strong brand appeal in cities like Washington, D.C. So after one of my trips to D.C., I bought the stock. It has not been a high flier, but this has been a good year, and I am not surprised. They seem to provide good service (at least good service for the East coast), and have a nice concept selling prescription drugs in the back with grocery items and a smaller version of "one point shopping" in the front.The concept works in urban areas because so many people are used to walking a few blocks to do their shopping. However, I wonder how they will do when they attempt expansion into suburban areas.Walgreens thrives in suburbia because they own the real estate in good locations. People go to Walgreens as a stand alone store. CVS has some homework to do to make sure that their concept is successful in a different venue. Other thoughts?BWRobin
CVS does well in suburban area where I am in Jersey and also the stores I see in western PA on frequent travels there. Stand alone units with plenty of parking and a upscale convenience store-like front end.
Hello,When I have traveled east to visit my folks in Indianapolis, I watched what was happening with the area drugstores taking biannual "snapshots." In the rapidly growing suburbs I saw CVS's popping up in widely dispersed areas in locations close to a lot of other stores of various types. I also watched as Walgreen's were popping up later, and they tended to be in good locations but clustered close together. They also tended to be more isolated.Both stores had complete inventories and were easy to shop in. The CVS strategy seemed to make a lot more sense to me. CVS appears to look great on paper (to me anyways) and their practices seem to make a lot of sense. That is why I bought them about 9 months ago. I have not been disappointed (yet). :-)
Dear Liam and kjblack:Thanks for your replies. CVS does not have any stores in Oklahoma, but Walgreens has been a mainstay for many years. Seeing CVS' concept in east coast cities encouraged me to buy the stock. I know of their expansion plans, but I was (and remain) concerned whether they could execute the expansion profitably - the social dynamic is considerably different in the midwest and southwest where people drive to their shopping destination as opposed to walk. Reading your posts about CVS strategy in suburbia is encouraging; it sounds like CVS is thinking about issues important to commuter shoppers who primarily drive to the location as opposed to walk.Glad for the discussion.BWRobin
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