DISCUSSION

CVS Sees Food Growing Urban Business

Written by George Anderson
By George Anderson

Back in January, 52 percent of respondents to a RetailWire poll said Walgreens' plan to introduce fresh and prepared foods into its stores was a "very good" or "somewhat good move" for the drugstore chain.

Now comes word that Walgreens' rival CVS is looking to add fresh salads and sandwiches to stores located in urban areas. About 20 percent of the more than 7,000 stores operated by CVS are in urban locations.

Dave Denton, chief financial officer for CVS, said the chain is focused on tailoring product selections to meet the needs of consumers in specific store locations.

"We have a select group of stores currently reconfigured where we are tailoring our assortment to how the consumer shops that store," Mr. Denton told Bloomberg News. "One of those items is expanding grocery and different food products that meet the busy lifestyle of people in those kinds of locations."

Discussion Questions: What will it take for CVS to succeed with the sale of salads and sandwiches in its urban locations? What other retail channels are most at risk from drugstores getting into the fresh and prepared foods business?

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