CVS/pharmacy, or simply CVS, is the nation’s second largest pharmacy chain with over 8,000 retail pharmacy stores around the country. The company is the nation’s largest provider of integrated pharmacy health care, serving more than 75 million plan members. It is the retail pharmacy division of its parent corporation CVS Health (NYSE:CVS) which ranks 10th on the 2015 Fortune 500 list.
CVS generates over 68% of its revenue from the pharmacy business. For the fiscal year ending December 2015, net revenues totaled over $153 billion, a 9.9% increase from fiscal 2014. In 2014, CVS became the first national drugstore chain to stop selling cigarettes; a move that was projected to cost the company $1.5 billion in annual revenue but was squarely aimed at positioning the company to become an integrated healthcare provider. Still CVS has been driving growth in its stores particularly in core businesses like health and beauty and after exiting tobacco, with the average basket size having increased 2%. In higher margin core categories, such as health and beauty, it is up to 4%.
CVS continues to expand its retail presence, opening 161 new pharmacy stores and relocating 58 stores in 2015. They have also acquired 1,672 pharmacy locations within Target stores in