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When a retail chain spans the entire United States, it needs to take the diversity of the clientele carefully into account. Even if everyone, regardless of their demographics, might need the offerings available in a convenience or drug store at some point, the way they want them will vary widely.

MCMH0005500Accordingly, CVS has undertaken a new initiative to ensure it is serving Hispanic U.S. populations appropriately and effectively. It began by acquiring the largest Hispanic-owned drugstore chain, then moved forward by remodeling stores in Hispanic-dominant markets such as Miami.

In accordance with these developments, CVS has announced it will start testing a new “CVC/pharmacy y mas” concept. In focal stores, all staff will be bilingual, and the shelves will stock brands familiar to Hispanic consumers, including Café la Llave, Creolina, Agustin Reyes, Suavitel, and Fabuloso. Cuban coffee will be brewed and served every day. In addition, stores that manifest the concept will provide a larger proportion of value- and family-sized products, along with competitive pricing positions.

Discussion Questions:

  1. What is CVS doing to attract Hispanic customers?
  2. What are the advantages and disadvantages of this strategy?


Source:  George Anderson, Retail Wire, June 4, 2015