CVS Health launches health, beauty makeover for drugstores
CVS drugstores that quit tobacco sales last year are now getting health and beauty makeovers and a shot of ethnic diversity in some cases to attract customers who want more than a prescription refill.
The nation's second-largest drugstore chain said Wednesday that it is adding fresh foods, healthy snacks and expanded beauty options to many of its locations.
They've also added clinics and expanded their health care services in part to get more business from aging baby boomers and people who are gaining insurance coverage through the federal health care overhaul.
"Health and beauty, in particular, is very high profit margin, and CVS has always been a leader there," said Jeff Jonas, a portfolio manager who follows the industry for Gabelli Funds.
Most of its corporate revenue comes from running one of the nation's largest pharmacy benefits management businesses, which handles prescription drug plans for employers, insurers and other customers.