CVS Corp. last week reported a 7.1 percent increase in December sales at stores
open for at least one year. It’s good news for the Woonsocket-based company
as it battles back from a slump that led the company to start closing 200 stores.
Last month, pharmacy same store sales increased 9 percent, while front-end sales – everything else in the stores – increased 4.2 percent, a jump that beat out competitors’ numbers.
Total sales for the five-week period ended Dec. 29 increased 8.2 percent to $2.46 billion.
Seifert Systems Invests in Energy Efficiency to Strengthen Operations
For manufacturers, energy is more than just another operating expense. It plays a critical role…
Learn More
The company will report its full-year results on Feb. 5.
"Our front-end sales clearly have been trending well over the past few months," said Tom Ryan, the company’s chairman, president and chief executive officer.
He added that the company’s sales were hurt by a significantly weaker flu season.
The promising sales numbers had no impact on the company’s stock the day it was announced on Jan. 8. CVS stock has gone four consecutive quarters with losses.
Analysts, though, see a lot of upside to the company.
"These guys clearly have a strong retail group, as well as strong regional market shares and a lot of market opportunities," said David McDonald, an analyst with Boston-based Leerink Swann Co.
He said that last summer he had concerns about the company’s ability to respond to a pharmacists shortage, which he said has since been addressed by the company. McDonald said the company also needs to deal with the lull in growth in some of its markets.
In October, the company announced that it would close 200 of its stores nationally. It has a total of 4,191 stores. The company will also close a distribution center and a mail-order facility.
"The store-closing process is part of a larger effort to get CVS back on track in terms of the growth that it previously enjoyed," said Todd Andrews, company spokesman.
Andrews said only one New England store, located in Hadley, Mass., will be closed. The company has had the most trouble in the metro-New York, New Jersey and Washington D.C. markets.
CVS will continue to move into new markets like Chicago, Florida and Las Vegas
this year. In 2001, the company opened or relocated 180 stores.
