Bloomberg reports that CVSA is investing more in the development of private label brands, believing that this will give it a differential advantage in a recessionary economy.
According to the piece, an example of the strategy is how CVS “is wooing cash- strapped shoppers with house-brand anti-wrinkle cream that’s as much as 30 percent cheaper than L’Oreal SA’s Advanced Revitalift.”
Private label sales generated 14.5 percent of company sales during 1997, the story says, and CVS hopes to get that up to 20 percent during the next three to five years.
According to the piece, an example of the strategy is how CVS “is wooing cash- strapped shoppers with house-brand anti-wrinkle cream that’s as much as 30 percent cheaper than L’Oreal SA’s Advanced Revitalift.”
Private label sales generated 14.5 percent of company sales during 1997, the story says, and CVS hopes to get that up to 20 percent during the next three to five years.
- KC's View:
- Interesting to watch the Walgreen-CVS battle. Stay tuned.
