CVS Drugstores, the nation's largest chain of specialty drug retail stores, reported that its November same-store sales growth topped the 8.4% mark for November, sending CVS shares upward. This even though Wal-Mart and Target both launched a $4 generic prescription drug program in this last quarter that I believe will erode some of the fatter margins that CVS currently enjoys with its drug business.Analysts expected an 8% same-store sale growth in November, so CVS's actuals outpaced that figure by a decent amount. Total sales for the four weeks ended Nov. 25 at CVS stores nationwide jumped 23.3 percent to $3.6 billion.
CVS purchased a new slew of stores, Albertsons Inc., which added some nice oomph and sales figures to CVS's November sales. While CVS lags behind retailing competitor Walgreens, it has more actual stores and has agreed to merge with Caremark soon, which will give it a revenue boost (although not in store count). Strangely, neither CVS nor Walgreens has matched Wal-Mart's or target's $4 generic drug strategy. Could this hurt them next year as customers flock out of specialty drug chains and into Wal-Mart for cheaper drugs?
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