CVS Brings Purpose to a Restructured World of Retail

As the pace of technological innovation accelerates and retailers scramble to meet the outsized expectations of shoppers, CVS/pharmacy is maintaining relevance by creating a differentiated omnichannel experience rooted in a strong sense of health-focused purpose.“We want to make things as easy as possible for shoppers, but with an ingrained sense of empathy,” said Brett Gerstenblatt, vice president and executive creative director of parent company CVS Health, during a keynote presentation at P2PX.Speaking with Wendy Liebmann, chief executive officer and founder of WSL Strategic Retail, Gerstenblatt described his role in CVS’ repositioning initiative two years ago, which was driven by both changing consumer trends and a new digital landscape. According to Liebmann, the shopper leading the restructuring of retail is highly demanding and has greater access to information than ever before. Yet, in a post-Recession age, she is driven less by a simple desire to buy material goods.“Through our insights work, we’ve been talking about a new notion of happiness,” Liebmann said. “It’s not about stuff anymore – there’s a different set of values.”Shoppers today are instead looking for financial stability, less stress in their lives and overall greater well-being, she said, describing the results of WSL’s latest “How America Shops” survey.The growth of digital tools such as click-and-collect, subscription services, personalized offers, and online circulars have solved some of the needs that retailers often struggle to meet. According to Liebmann, eight out of 10 shoppers surveyed by WSL were satisfied with these tools. But rather than replacing the store, they’re changing how shoppers use the store.“They are enablers of future growth,” she said. “It’s not about in store or out of store, it’s about creating a suite of solutions.”For its part, CVS has beefed up its omnichannel capabilities, expanding its curbside pickup service to more cities, launching subscription services, and integrating digital manufacturer coupons into its mobile application, among other steps.But at the same time, it is also offering shoppers an entirely new proposition — a holistic shopping experience that puts their own path to health front and center."Our outward expression, 'health is everything,' guides every part of our business," Gerstenblatt said.The retailer recently made headlines by rethinking its store format and product assortment to emphasize healthy snacking options, clean labels, on-trend items and convenient health care solutions."Health can mean many things to different categories,” Gerstenblatt said. “Health can be trendy, health can be tasty, and health can be affordable.”Brands still play a critical role, Gerstenblatt said, because while CVS can provide certain platforms and infrastructure, it is the products themselves that solve real human needs and drive sales.CVS uses a “hub-and-spoke” approach that allows it to view its stores beyond the limitations of physical real estate to meet the right shoppers in the right location, whether that’s online, through an app, in a vending machine, or on the shelf. When it works with brands, marketing teams can present a variety of options to them to make sure a product is launched optimally.“It creates a portfolio of access points for the shopper,” Liebmann said.One such example is the retailer’s "Long Live Skin" platform. When the retailer stopped selling sunscreen with SPF lower than 15 because research has shown it to be ineffective, it needed to keep category sales up, while also educating consumers on the importance of sun safety. With its marketing and merchandising team working alongside its partners, CVS created a campaign that utilized every tool available, from in-store activations to digital offers and social media content.Liebmann added that even with “dazzling” experiences, marketers must execute the basics correctly to be successful. In addition, it is vital to build strategy from insights and target shoppers correctly, offer convenience online and offline, and ultimately, share your brand story and purpose.“The starting point to do business is to understand what your purpose is,” Gerstenblatt said. “That’s how you differentiate.”

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