What can CVS do to differentiate its health services concept from Walgreens’ new concept and vice versa? Do you think CVS would be better served separating its new health services concept into a distinct format while operating its drugstore format separately?
Interactive Edge’s CEO, Zel Bianco comments:
If CVS could pull off doing this in the same location, that would be better. Who needs to go to yet another location for health services and then another for rest of your list? One-stop shopping is always better especially as they have great locations. As to how to compete with Walgreens, speaking for NYC only, I see a big difference between CVS and Walgreens. Yes they basically have the same assortment for the most part, but the difference I see is the human factor. CVS really goes the extra mile as associates will always greet you on the way into the store and are always ready to help, be it the counter person, the pharmacist or store manager. I don’t get that feeling at Walgreens. Now, having said that, it is a totally different experience when I am in Chicago. Hands down, the experience in Chicago at a Walgreens is warm and friendly. Can these two chains compete in a way that sets them apart? Perhaps, but in my book the human factor should win every time.
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