CNBC reported that CVS Health is well on its way to achieving its goal of rehabilitating more than 1,000 of their stores. CVS Health launched three HUB concept stores in Houston at the end 2018. The program was then expanded to 50 locations in four other markets by the end 2019. Many more will be added by 2020. HealthHUB concept stores provide a variety of wellness products and health services for daily care and chronic conditions. The goal is to make CVS a “healthcare destination.” Larry Merlo, CVS Health CEO, stated to CNBC that the retailer has seen positive early results with the HealthHUB concept stores. There is growing consumer interest and increased foot traffic at the stores. CVS Health is expanding its HealthHUB program in Boston, Dallas-Fort Worth and North Carolina this year.
Total Retail’s Consideration: CVS purchased Aetna, a health insurance company, in 2018 to position itself as the country’s leading health innovation company. One more step in this direction is the expansion of its HealthHUB concept shops. It is becoming more common to combine healthcare and retail. Walgreens, a CVS competitor, is also changing its strategy to be more focused on healthcare. Both retailers aim to increase foot traffic into their stores. It will be fascinating to see how these brands differ and how consumers react to having more options for their healthcare needs. CVS believes convenience will win out.
How retailers can reach overwhelmed consumers in 2020
Retail has seen a major shift in recent years. With the rise of direct-to consumer (D-toC) brands, a market that is increasingly saturated with new options in all verticals and Amazon.com’s lingering dominance, the retail industry has experienced a seismic shift. It’s not surprising that brands have had their strategies changed to retain customers and tap new markets.
Retailers will need to be agile in order to remain competitive in the new decade. What can brands do now in order to grab consumers’ attention and keep them top of mind this year?
Global real world intelligence company Blis has released a report that analyzes the current state in retail. This is to assist brands in understanding where they are heading and how they can make a difference. These findings showed which brands are winning in the retail battles and which categories are flourishing, as well as how retailers can retain or gain new customers.
Which Brands and Categories Are Thrilling in Retail today?
Despite the widespread talk about brick-and-mortar’s demise, physical retailers continue to thrive in the U.S. According to the report, the U.S. has the highest in-store foot traffic for sporting goods retailers with Dick’s Sporting Goods leading the charge and Modell’s following close behind. Interestingly, 34% of all shopping in the United States is done at sport shops (compared to 21%).
The rise in athleisure wear, as well as a wide range of workout options available for almost everyone, led to a strong earnings season by Dick’s. In Q2 2019, the company saw double-digit revenue growth. Dick’s expanded its offerings to include electronics, travel gear, and athletic equipment. This move has paid off. Dick’s combined with an omnichannel strategy that uses e-commerce for in-store sales has helped it stay at the top of a crowded marketplace that also includes retailers like Athleta and lulumon.
The top 10 U.S. retailers for foot traffic and market share also include specialty retailers like Victoria’s Secret and discount stores such as Marshalls. These retailers must find innovative ways to stand out in their respective categories and take inspiration from the digitally-savvy brands within their industry.
What can the largest states tell us about today’s shopper?
According to the study, nine states in the United States account for 52 percent of all in-store shopping visits. These include New York, Texas and California. It is interesting to note that sporting goods stores, which are among the top three retail categories in the area, are among the most active shopping states, New York, Texas, and California.
Model’s and Dick’s are still a favorite among New York shoppers. Academy Sports + Outdoors is ranked in the top three shopping locations for Texans. Californians flock towards Big 5 Sporting Goods, the number one retailer. These top brands are able to ensure that consumers’ interest is maintained by providing steady mobile activity. These brands can also use location intelligence to drive in-store traffic based on consumers’ real-world browsing habits and capitalize upon their physical experiences.
What does this mean for retail today?
Marketers will need to have a greater understanding of their customers, not only what they buy from their brands but also where they shop and what they might be looking for next. This will require a higher level of real-world insight beyond the historical and transactional data that retailers typically use to analyze individuals who come into and leave their stores.
One strategy for brands to gain market share is to target their customers. According to the study, Nike will have to target yoga studios as well as farmer’s markets if it wants to reach lulemon customers.
This deep understanding of where consumers have been and where they are going can help brands to predict their future. Brands can target shoppers more effectively with real-life insight on consumer behavior to better reach overwhelmed shoppers.