Longtime retail consultant/analyst Walter Loeb likes what he sees from CVS Health.
In a Forbes article on Friday, Loeb described CVS as a compelling health and wellness destination, especially in the wake of its acquisition of Target Corp.’s pharmacy and retail clinic business, which he called a “bold move.”
“I expect CVS stores to be a leader this year,” Loeb wrote in the Forbes column, which appeared days after the annual CVS Analyst Day event.
Specifically, he pointed to CVS’ store remodels and sharper focus on beauty and food, efforts to promote personalization and strong store-brand offering, as well as its health-focused moves, including the removal of tobacco products from all CVS/pharmacy stores and programs to foster medication adherence. He also cited the health and Rx services that CVS provides via MinuteClinic and its PBM segment.
Loeb added that “the drug store industry has changed drastically over the past decade” through a wave of mergers and acquisitions, yet he noted that these M&As generally have clicked.
“This is because the customer is benefitting by making the drug store a destination for health and wellness products and services,” he wrote. “Putting the customer first is always the winning strategy in retailing.”