Changes in the drugstore market are prompting an array of responses from the various competitors. At CVS, one key strategy seems oriented toward cosmetic and beauty products. The drugstore chain has opened stores-within-stores in several locations, called BeautyIRL, which offer expansive selections and testing options for cosmetic products, “in real life.” It plans to introduce the designs in more stores soon, seeking to appeal to younger shoppers who might otherwise have visited specialty beauty shops like Ulta and Sephora. At the same time, CVS continues its determined effort to be the pharmacy of choice for shoppers, by increasing the convenience of getting prescription drugs; it soon plans to introduce same-day or next-day delivery of certain medications. Such proactive moves likely reflect the company’s determination to head off increasing competition from Amazon, which recently purchased an online pharmacy company and thus appears poised to threaten the market share of existing drugstore chains.

 

Source: Matthew Stern, Retail Wire, September 5, 2018