CVS puts new emphasis on photo, cards, stationery

Drug Store News, Feb 3, 1997

Vice president/merchandise manager Cheryl Mahoney not only oversees the beauty department at CVS, she is responsible for the photo and greeting card departments.

CVS recently made a significant change in the photo department, signing a multi-year, multi-million dollar contract with Kodak to provide all of the chain's processing needs. By switching CVS' photo vendor partner to Kodak, rethinking merchandising adjacencies and installing new fixturing in both the photo and greeting card departments, Mahoney hopes to elevate the importance of both of these categories to CVS's customers.

Mahoney, who has overseen photo and greeting cards for two years and stationery for six months, is supported by two category managers--Jim Sheil for photo and Tom Lane for greeting cards/stationery--and two category analysts--Bill McManus for photo and Lori Poutre for greeting cards and stationery.

Photo is one of the most bullish front-end categories in drug chains, and CVS is clearly shooting for a bigger picture through initiatives that include rolling out 100plus one-hour labs, new photo departments chainwide, the use of Kodak paper and chemicals and the expansion of the chain's overnight processing to seven-day service.

"These will be some of our key drivers in 1997," Mahoney explained.

Behind this surge in photo department activity is a new strategic alliance with Kodak. This year, CVS will offer Kodak Premium Processing and use Kodak paper and chemicals for all its photo finishing, including its branded overnight service and onsite or one-hour processing. CVS also recently expanded the scope of its next-day photo finishing, to seven days from six days a week.

Concurrent with the Kodak alliance comes a larger, more prominent photo department design that the chain currently is rolling out to its stores. The new department, now installed in 600 CVS stores, will be chainwide this year.

"We've included Kodak yellow in the fixturing, which screams Kodak," Mahoney said. "That, combined with a decision to move film from a gondola run to a permanent fixture adjacent to the photo department, should enhance the presence of the whole photo department. It's a significant change."

Greeting cards/stationery/ gift wrap is the first department a CVS customer sees upon entering a store, and now the chain hopes to make an even bigger statement with this department by shifting products around. The new design will be rolled out to 700 stores in 1997 and chainwide by 1998.

Instead of leading the department with stationery on the right wall and greeting cards and gift wrap on both sides of the second aisle, the chain is placing gift wrap and greeting cards immediately on the right wall, with stationery located at the end of the aisle. Greeting cards and gift wrap follow through to the second aisle, as well.

"This look will give us a greater presence for seasonal and gift wrap," said Mahoney. It should also raise awareness of the chain's offering of alternative cards, as it includes a fixture that looks like a wave moving down the aisle.

CVS offers both American Greetings and Hallmark departments, although Hallmark is in more stores. The chain does carry a few thank you notes, stickers and seasonal items but little else in ancillary social expressions products.

Stationery is positioned as what Mahoney calls "a resource business," a step below destination but a cut above convenience.

"We offer breadth and depth of assortment, but we're not a Staples," Mahoney said.