CVS will open 1,500 HealthHUB stores by the end of 2021, the company announced on Tuesday before Investor Day.
The HealthHUBs are redesigned drug stores focused more on health services and products rather than sweets and greeting cards. CVS opened its first three HealthHUB facilities in Houston in February. It is planned to open additional offices in Houston, Atlanta, Philadelphia, South New Jersey and Tampa, Florida by the end of the year.
"We are pleased with the customer feedback we received about the HealthHUBs," said CVS Pharmacy Kevin Hourican in an interview. He said these stores in Minute Clinics had more visitors, more pre-sale sales and more prescription drugs.
HealthHUBs include an expanded health clinic with a laboratory for blood tests and health examinations. There are also spa rooms for yoga and seminars, nutritionists and respiratory specialists in the HealthHUBs.
Alan Lotvin, Executive Vice President Transformation at CVS, said the 50 CVS stores added this year will have the same features while the others are added next year and next year may look a little different as the company improves the design. CVS can customize the designs for different markets and store sizes. For example, Hourican said that stores in the northeast tend to be smaller than those in Texas, so the company needs to reduce them.
Like other retailers, CVS needs to figure out how to get people to do business. and healthcare offers consumers something they can not buy online.
The company announced in May that it was closing 46 stores that underperformed. Hourican said he does not expect "reasonable" store closures. However, he said there are 500 renewal leases each year and CVS will review them.
Executives also believe HealthHUBs will help drive CVS '$ 70 billion acquisition of health insurer Aetna. The combined company wants to keep its members healthier and lower health care costs, and the management of chronic illness in its drugstores will help. The company will track how its members handle business services and whether it leads to behavioral changes, clinical outcomes and cost reductions.
"It's really measured at every step, do you get what you expect," he said. "When you get the clinical results, you see the cost savings we modeled."
CVS announces that executives are trying to convince analysts and shareholders of their strategic vision on Tuesday's New York Investor Day. The company's share price fell 20% this year. Executives warned that 201