X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

WOONSOCKET, RI-CVS saw its sales surge 31.5% in the four weeks ending May 28, an increase largely due to the firm’s acquisition of 1,268 Eckerd drugstores and Eckerd’s pharmacy-benefit management business.

“By any measure, the Eckerd acquisition was a success,” said Thomas Ryan, chairman, president and chief executive officer of CVS Corp. and president and CEO of CVS Pharmacy Inc. Ryan, speaking at the firm’s annual analyst meeting Thursday, said last year’s acquisition of the Eckerd’s drug store chain helped CVS become a market leader in the high growth southeast and southwest regions while significantly diversifying its client base.

The pharmacy giant said company stores opened for at least a year showed sales increases of 5.8% in the four weeks ending May 28 while same store sales so far this year rose 7.2%. Overall year-to-date sales at all CVS stores showed a 33.4% increase.

The flourishing pharmacy industry, facing an aging baby boomer population, the increasing use of more profitable generic medications and a tidal wave of blockbuster designer drugs, is expected to more than triple in the next decade with growth rising from $236 billion in 2004 to a projected $720 billion by 2015, Ryan said.

“With the largest retail store base in the country and a significant PBM/Mail Order/Specialty pharmacy business, CVS is in the ‘sweet spot’ for growth opportunities,” Ryan noted.

The company, which operates more than 5,000 stores in 36 states, said it plans on capturing even more business with the addition of 275 to 300 stores annually over the next few years.

The Woonsocket, RI-based chain increased its full-year profit outlook to between $2.70 and $2.75 a share from an earlier forecast of between $2.66 and $2.72 and said earnings were likely to range in the second quarter from 61 cents to 63 cents a share, above its earlier outlook of 59 cents to 61 cents.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 3 free articles* across the ALM subscription network every 30 days
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

Dig Deeper

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.