Thomas Ryan, chief executive officer at CVS Caremark, didn't say his company is recession proof but he doesn't see the economy causing consumers to cut back significantly on the purchases they make at the company's drug stores.
"People will keep filling prescriptions and taking care of personal hygiene and nutrition," he said in an interview on Bloomberg Television.
About 85 percent of CVS Caremark's revenues are generated from purchases of drugs and healthcare products.
According to Mr. Ryan, about three percent of CVS's business is "affected by the economy."
CVS is looking for sales growth of between 13 and 16 percent in 2008. The company expects its pharmacy benefits management and in-store MinuteClinic businesses to help it achieve that goal.
"We are leveraging our unique combination to help payers control costs more effectively, improve patient access and promote better health outcomes," Mr. Ryan said. "Our integrated model provides us with an opportunity to gain share and create new sources of growth in 2008 and beyond."
Discussion Questions: Do you see CVS and other drugstore chains as being less prone to the negative effects of an economic slowdown than other retail channels? Do you think Thomas Ryan was minimizing the challenges CVS faces in the non-prescription end of its business?