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CVS and Walgreens “Concept Stores” Are Honing in on DME

March 11, 2019

In an attempt to turn their stores into “health service hubs,” the two largest pharmacy chains in the U.S. (Walgreens and CVS) are remodeling stores to resemble doctors’ offices. According to an Associated Press article by M. Spencer Green, CVS opened three such concept stores in Houston late last year.

Called HealthHUBs, the stores “dedicate much less space to typical drugstore products like greeting cards and seasonal items. Instead, these stores offer more health products like sleep apnea masks and devote space to services aimed at helping customers manage chronic conditions.”

In addition to the sleep apnea masks, walkers are also sold at the redesigned stores. “CVS' walk-in clinics, MinuteClinics, now offer more services, including a lab for blood testing and health screenings,” writes Green. “Nurse practitioners can screen patients for diabetic retinopathy, or vision loss associated with diabetes, as well as sleep apnea. The HealthHUBs also include a dietitian who can counsel patients in stores or connect them with Noom, an online weight-loss service.”

Even in the world of groceries, officials at Kroger are reportedly pursuing the health care market. According to Bloomberg via Beckers Hospital Review, Kroger CEO Rodney McMullen said: “Healthcare is an area where we see a lot of opportunity. We're talking to several potential partners at the moment.”

Bloomberg reports that Kroger has already “partnered with pharmacy Walgreens for a pilot program that allows customers to order groceries online and pick them up at Walgreens locations. Kroger also operates a specialty pharmacy business that posted strong sales in 2018.”

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An Associated Press (AP) article

A Walgreens and CVS drugstore are seen on adjacent corners at an intersection in Calumet City, Ill.

CVS Health and Walgreens are remodeling some of their drugstores to look more like doctor's offices.

The two largest pharmacy chains in the U.S. have both opened redesigned stores that dedicate more space to health services and less space to staple products like greeting cards. As people shop online more, CVS and Walgreens are trying to give people reasons to keep coming into their drugstores.

While their redesigns are just tests at this point, they could become models for future stores. Here's a look at CVS and Walgreens' new stores.

CVS' HealthHUBs

CVS opened three concept stores, called HealthHUBs, in the Houston, Texas area in December. These locations dedicate much less space to typical drugstore products like greeting cards and seasonal items. Instead, these stores offer more health products like sleep apnea masks and devote space to services aimed at helping customers manage chronic conditions.

Medical products

CVS' new concept stores, called HealthHUBs, offer more health services than its typical drugstores.

Care concierge

Each HealthHUB staffs a "care concierge" to help guide customers through the new health services and provides more care coordination between the pharmacy, the clinic and the other services. iPads are also stationed for people to browse health and wellness apps and shop on CVS' website.

 

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