CVS Health Expands its Services within Drugstore Locations

Dec 9, 2021 By MarketDepth

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CVS Pharmacy Store

CVS Health (NYSE: CVS) announced that its sales growth is accelerating as it broadens the services it offers within its drugstore locations as well at people’s residences. The company’s goal is to make healthcare easier and more affordable for consumers. Shares rose almost 3% during morning trading, upon the news.

Boosting Dividend

The American healthcare company is boosting its dividend and presenting a better-than-anticipated 2022 revenue outlook as it prepares to expand areas such as primary care. The company revealed that it plans to add advanced primary care centers to its drugstores as well as the “HealthHUB” locations it launched a few years ago.

Strategy at Investor Day

The company is set to share its strategy at its investor day, the first one being held since the start of the pandemic and since new CEO Karen Lynch, stepped into the role. Lynch disclosed that CVS is prepared to build on evolving consumer trends as well as the trust it built throughout the pandemic. CVS administered over 50 million Covid vaccines and approximately 29 million tests as of November. The new services alone have pulled in 32 million new customers and generated over USD3 Billion in revenue for the year.

“We really believe that we need to kind of push into the primary care so that we can influence the overall cost of care.”

CEO, Karen Lynch

Lynch believes that CVS is positioned to aid the recovery of a broken health-care system, which constantly affects customers and keeps rising in cost.

“The market is ripe for change that only we can deliver.”

CEO, Karen Lynch