CVS wants to put something creepy into all of its stores
The massive pharmacy is thinking about the future in a new way.
There's something very unique — and very American — about walking into a drugstore.
Anybody who's ever traveled abroad will tell you that our pharmaceutical retail experience is quite different from most others around the world.
Related: Major drugstore chain closing hundreds of struggling stores
In Europe, for example, many drugstores are simply that.
They dispense prescription drugs and a few personal essentials closely correlated to health care, like over-the-counter medications and hygiene products.
European pharmacies tend to be much smaller, too. They rarely offer any of the other services U.S. pharmacies do, like photo printing. And many tend to be run independently, rather than by larger corporate conglomerates.
In the U.S., however, drugstores are quite a different story.
Large-scale pharmacies, like CVS (CVS) , are big business. There are over 9,000 CVS stores across the country, and they offer a wide array of services.
Most CVS locations will take your passport photos, process and print other photos, offer vaccinations, provide medical services, and sell groceries, cosmetics, greeting cards, and dozens of other goods intended to make life quicker and easier.
Of course, CVS fills prescriptions, too. Image source: Shutterstock
CVS is beating out competitors
This strategy works well against many of CVS's competitors.
By offering different services in one location, CVS is able to capture customers who may not otherwise need to go into a drugstore.
Consider, for example, what you might do if you're running late to a birthday party but you forgot to bring something.
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On your way to the party, you'd likely pass at least one CVS. You'd be able to run in quickly and grab a birthday card, a children's toy or a piece of jewelry, wrapping paper, and in some states, even a bottle of champagne.
It's no surprise, then, that CVS is rapidly gaining market share.
Despite a string of store closures, the drugstore has seen its average number of store visits rise by nearly 3% year-over-year.
And it recently overtook Walgreens as the most popular drugstore; about 49% of customers reported purchasing something from CVS, compared to 44% from Walgreens, per Coresight Research.
CVS has eyes on new tech
Naturally, CVS wants to capture as much market share as possible.
More market share means more customers, and more customers almost always correlates with higher profits.
This comes at an especially opportune time, as Walgreens is in the midst of going private and closing hundreds of stores across the U.S.
Related: Bankrupt retail chain closing all remaining stores, liquidating
Parbinder Dhariwal, VP of CVS Media Exchange (CMX), knows this is an opportunity.
He has indicated that he'd like to install new technology across all CVS stores that include screens to upsell customers with targeted ads in pharmacy waiting areas or at the end of aisles.
The screens include "real-time, closed-loop measurement," Dhariwal explained to The Drum.
"We know the average time a customer is in-store. We know when they’ve seen a message. And we can link that to purchase. It’s not rocket science – but it is effective," he said.
And CVS is well on its way to building out these capabilities.
Dhariwal has already helped to implement over 4,000 screens across CVS stores and launched targeted advertising audio in stores. He's also helping to build out about 500 stanchions near the front entrance by the end of 2025.
