COVID-19 Pandemic Presents Opportunities for CVS

CVS Health is focused on providing services that are in high demand as the pandemic puts health care top of mind, CNBC reported. The pharmacy chain has opened more than 1,800 drive-thru sites for COVID-19 testing, launched a new B-to-B testing program for colleges and corporations, and is preparing to administer flu shots this coming fall and winter.

The pandemic has changed consumers shopping habits, including the way they get medical care. In the beginning of the pandemic, CVS stores filled fewer prescriptions and saw a drop in store revenue since less customers were shopping in stores and going to less doctor’s appointments. The company also had a shift in who is shopping with it. CNBC reported that CVS Medicaid members increased and its commercial members decreased as companies laid off and furloughed employees.

The pandemic has created opportunities for CVS to reach new customers and increase revenue. According to CNBC, the pharmacy administered around 2 million coronavirus tests, and about 40 percent of those tests were given to people who weren't CVS customers previously. Furthermore, CVS expects to see a big demand in flu shots this year and plans to play a big role in meeting that demand. CVS will also roll out COVID-19 vaccines when they become available.

Total Retail's Take: CVS, and other pharmacy chains, are in the unique position to grow their business during the COVID-19 pandemic, even with all of the economic uncertainty. More than ever, Americans are taking their health seriously. CVS has worked hard in recent years to reposition itself as a one-stop-shop for all things health care, instead of just a corner pharmacy. It will be interesting to see how the COVID-19 vaccine effects the business once it becomes available. That said, CVS has done an admirable job of quickly adapting its business to capitalize on consumer demand for healthcare services.