When CVS Health agreed to purchase the in-store pharmacies from Target Corp., transforming many of them into convenient health care clinics, the massive deal offered benefits for both parties. CVS gained a new retail channel that will allow it to reach new and potentially different customers—that is, those who prefer to shop in Target stores to get all their shopping done in one stop, instead of visiting their local drugstore in a separate trip. The CVS brand thus will appear in more places, and the conglomerate gets closer to its goal of having 1500 convenient clinics in operation by 2017. Target gains another source of distinction for its brand, in that the new in-store clinics will allow it to expand its reputation as a source of wellness-related products. The revenue it will gain from the deal—approximately $1.2 billion—also will enable Target to double down on its core initiatives. Overall then, the cooperation promises to benefit consumers, who will have access to an expanded array of products and services when they visit their local Target stores.
Source: Miek Troy, Retailing Today, June 15, 2015