Store openings will remain on even keel

Chain Drug Review, Feb 2, 2009

WOONSOCKET, R.I. -- This year CVS Caremark Corp. aims to hold steady with its rate of store openings.

"For 2009 our plan is to open to 250 to 300 new stores," chairman and chief executive officer Tom Ryan said during a conference call with financial analysts last month. "About 150 to 175 will be new, and the rest will be relocations."

Overall the company expects to increase its square footage by 3% to 3.5%, excluding the Longs Drug Stores acquisition, according to Ryan.

"That's basically what we've been growing our square footage at for the last several years," he said.

With the integration of Longs, due for completion late this year, CVS Caremark will add 521 stores to its more than 6,300 retail and specialty pharmacy locations nationwide.

Despite the decline in commercial real estate values, CVS Caremark will remain highly selective in its choice of locations and keep tight control of occupancy costs, Ryan noted.

"We see a current decline in commercial real estate values as an opportunity for our retail division," he said. "However, we will not fall into the trap of opening up too many units merely to demonstrate top-line growth. We don't need it."