Kodak launches 'print-while-you-shop' digital photo kiosks in CVS stores

Drug Store News, August 18, 2003

CVS teamed up with Kodak last month on a new deal that will put Kodak's new Digital Order Stations in all CVS stores with one-hour photo labs, which comprises roughly three-quarters of the chain. The kiosks allow customers to make prints of digital-photos quickly and easily and without making the huge investments in color printers, ink and special paper necessary to print high-quality digital images at home.

With the move, CVS becomes the first national chain to offer some form of digital image processing in each of its stores--a distinction that could make a big difference as retailers set about targeting photo-processing business lost because of consumers exodus from film to digital cameras. The overall drop-off in both film and traditional processing sales across all of retail has been reported widely in recent years.

The new kiosks print images from camera cards, CDs and floppy disks for prices comparable with those of traditional prints. CVS has focused on making the self-service machines user friendly and easy to understand, with clear directions and a simple touch screen. Customers have control over which photos to print, as well as several enhancement options, including zoom, crop and auto-enhance features. Kodak is providing certified training for CVS employees in each store receiving the new digital processing kiosks.

As core users of digital cameras have moved from people interested mainly in the technology to those more interested in the pictures themselves, demand for ways to print digital photos is increasing, CVS executives have noted. According to InfoTrends Research Group, 20 percent of U.S. households now own a digital camera. And CVS customer research indicates that there is a strong demand for photo-quality digital printing at retail--particularly among women, drug stores key customer.

"Women are the memory keepers," said Judy Strauss Sansone, CVS vice president of merchandising for OTC/health, photo and private label. "Our customers don't want their memories stuck on hard drives. CVS is providing them with a convenient and affordable solution that enables them to enjoy their digital images just like traditional photos--to frame, store in albums and share with family and friends."

The stations began rolling out to CVS stores last month, and the chain promoted them to ExtraCare members and in weekly circulars.