Archived CVS Pharmacy @ Target

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Amaazingdude

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News just broke. CVS Pharmacy bought out Target Pharmacy. All Target Pharmacy Cashiers and uncertified techs will be transferred to different positions within Target. All Pharmacy certified techs and ETLS will be offered positions with CVS.
 
I'm curious if CVS can handle the expansion. They will be paying $20 million to $25 million in annual rent to Target for the pharmacy and clinic space. Is this Target's strategy - lease out parts of the store? Softlines will become American Eagle, sporting goods will become Dick's, Electronics will become Circuit City, toys will become TRU, etc. I can almost see Market becoming Kroger, Wegmans, Giant, Food Lion, etc.

I guess this cuts some costs.
 
I suspect this decision will be fairly decent at best for CVS, and fairly horrible at worst for Target (no surprise there). If people wanted to go to CVS, generally there was already a CVS in the local vicinity and Target was the cheaper option. Now Target may gain money from leasing of space in the stores, but they're going to lose profit by guests who chose not to shop there anymore. And what happens if CVS doesn't turn it into the big money maker they propose it is? I will admit I'm ignorant on what's going on with the pharmacy business or behind the scenes, but I can't forsee this 'partnership' doing very well five years from now.
 
Mhugh220 said:
I'm curious if CVS can handle the expansion. They will be paying $20 million to $25 million in annual rent to Target for the pharmacy and clinic space. Is this Target's strategy - lease out parts of the store? Softlines will become American Eagle, sporting goods will become Dick's, Electronics will become Circuit City, toys will become TRU, etc. I can almost see Market becoming Kroger, Wegmans, Giant, Food Lion, etc.

I guess this cuts some costs.
Click to expand...

This actually might be Target's strategy for real. Think of Best Buy, who to turn things around in their stores started leasing space in store directly to Samsung, LG, Apple, Windows, etc. Target is already moving in this direction with Electronics and now Pharmacy, I could easily see it expanded more for Electronics, Softlines (think of a section dedicated to, let's say "H&M" with a H&M brand TM who may not even be employed by Target), and yes perhaps even in Grocery. Don't expect full conversions of stores or anything more than maybe small sections in certain departments, but yes I can easily see Target 'selling out' more.
 
It will be branded "CVS Pharmacy". Everyone will actually work for CVS. All the Target registers will be removed and replaced with CVS registers. Your receipt will say CVS crazy.
 
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I wonder if they will be allowed in TSC? Or will they have their own breakroom ?
 
cmat21 said:
I suspect this decision will be fairly decent at best for CVS, and fairly horrible at worst for Target (no surprise there). If people wanted to go to CVS, generally there was already a CVS in the local vicinity and Target was the cheaper option. Now Target may gain money from leasing of space in the stores, but they're going to lose profit by guests who chose not to shop there anymore. And what happens if CVS doesn't turn it into the big money maker they propose it is? I will admit I'm ignorant on what's going on with the pharmacy business or behind the scenes, but I can't forsee this 'partnership' doing very well five years from now.
Click to expand...
As long as the Logistics team is safe, it's cool
 
Damn, this is crazy. I wonder how fast after the deal is finalized that CVS will start to show up in stores. I also wonder how fast current Target pharmacy employees jump ship to find a new job before the "takeover". I was reading the first article I saw on this a little bit ago and got a text from Target pharmacy it was time for a refill. Thought that was kind of humorous.
 
CVS is terrible in our area.
Our tech used to tell me how many guests transferred their scripts form CVS because of sloppiness.
My MIL was given someone else's Rx last year. The caretaker had picked it up but discovered the mistake when she got home & looked at the bottle closely (same last name, diff first name).
CVS in our area got fined a while back when an impersonator worked in one of their pharmacies for 2 months before being caught.
Thereafter, every relief pharmacist had to show their state card.
 
I hope we still keep those cool rx bottles. I can't open cvs bottles without a struggle. I did wanna change my bottleneck color, though lol.

cvs trains their techs so they can get certified, though (I looked into applying for a job), so I don't understand why our uncertified techs would have to transfer depts. We only have one and I don't think she wants to go back to working on the floor. And I don't blame her.
 
I guess this is the new Target thing. Can not figure out basic logistics in Canada? Close all of it. Can not figure out how to make money off of cell phones. Contract it out. Can not figure out how to run Pharmacy? Sell it off. You know, food has to be next. What is really embarrassing is that other companies seem to be able to do these things while Targets leadership remains clueless.

And it is getting more and more clear the new top dog is going to cut cut cut raise that stock price and then get out with millions.
 
http://www.startribune.com/target-selling-its-pharmacies-clinics-to-cvs-for-1-9-billion/307346171/

Target Corp.'s 1,660 pharmacies and 80 clinics inside its stores are being acquired by CVS Health Corp. in a $1.9 billion deal.

...

Merlo noted that Target's pharmacy business generates about $4.2 billion in annual revenue. Target's overall revenue is $73 billion.
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Is this what Target, who has been trying to squeeze every profitable cent out of its stores in the past few years, wants?
 
My biggest question is how are they going to handle backups now. At most of the stores I worked at there was always at least a few other team members that were trained to backup cashier in pharmacy in case of rushes. Is CVS going to bring in their own non-tech cashiers to man the registers? Will they be better at staffing appropriately than Target was.

My guess is the branding will switch over to CVS @ Target or some such designation but what about the guests that don't really understand the distinction. They're gonna be pissed if there's backups with no one to help out and they won't understand that they're 2 different companies now. The logistics of this transition seem like they will make it a long road for both companies.
 
RedDog said:
I guess this is the new Target thing. Can not figure out basic logistics in Canada? Close all of it. Can not figure out how to make money off of cell phones. Contract it out. Can not figure out how to run Pharmacy? Sell it off. You know, food has to be next. What is really embarrassing is that other companies seem to be able to do these things while Targets leadership remains clueless.

And it is getting more and more clear the new top dog is going to cut cut cut raise that stock price and then get out with millions.
Click to expand...

The can have Food Ave at my store, all of are staff there uit over the last month and only the tl is left
 
daninnj said:
http://www.startribune.com/target-selling-its-pharmacies-clinics-to-cvs-for-1-9-billion/307346171/



Is this what Target, who has been trying to squeeze every profitable cent out of its stores in the past few years, wants?
Click to expand...
Given those facts, I find it difficult to understand how this was a smart move for Target. They sold it off for less than half of their annual revenue. Granted, that's not profit and Target will continue to be able to get rent from CVS for the pharmacies but this just seems weird. Now the question is, what are they gonna do with that $1.9 billion. My guess? More stock re-purchasing so the board can further line their pockets.
 
I am shocked. There's so many things they could possibly alter by implementing this, I wonder if they'll change the pharmacy hours at all? Money wise I suppose it's a smart move for Target, but I don't think it'll be a good look overall. I feel for the pharmacy TMs who are surely getting flooded with questions and phone calls today and for the foreseeable future, and probably have no answers.
 
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