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Fast Five Shorts | CVS To Launch New “Mini-Stores” · Omni Talk Retail

• 0:00
  CVS
• 0:00
  is
• 0:00
  rolling
• 0:01
  out
• 0:01
  new
• 0:02
  mini
• 0:02
  adorable
• 0:03
  stores.
• 0:03
  According
• 0:04
  to
• 0:04
  the
• 0:04
  Wall
• 0:04
  Street
• 0:04
  Journal,
• 0:05
  CVS
• 0:05
  Health
• 0:06
  is
• 0:06
  preparing
• 0:06
  to
• 0:06
  open
• 0:07
  dozens
• 0:07
  of
• 0:07
  stores
• 0:08
  offering
• 0:09
  full
• 0:09
  service
• 0:09
  pharmacies
• 0:10
  but
• 0:11
  very
• 0:11
  limited
• 0:12
  retail.
• 0:12
  The
• 0:12
  new
• 0:12
  stores
• 0:13
  will
• 0:13
  be
• 0:13
  on
• 0:14
  average
• 0:14
  less
• 0:14
  than
• 0:14
  5,000
• 0:15
  square
• 0:15
  feet
• 0:16
  or
• 0:17
  not
• 0:17
  even
• 0:17
  half
• 0:18
  the
• 0:18
  size
• 0:18
  of
• 0:18
  a
• 0:18
  typical
• 0:19
  CVS
• 0:19
  location.
• 0:20
  The
• 0:20
  company
• 0:20
  said
• 0:21
  the
• 0:21
  12
• 0:21
  new
• 0:21
  stores
• 0:22
  are
• 0:22
  expected
• 0:22
  to
• 0:22
  open
• 0:23
  over
• 0:23
  the
• 0:23
  next
• 0:24
  year
• 0:24
  in
• 0:24
  cities
• 0:25
  and
• 0:25
  towns
• 0:25
  throughout
• 0:25
  the
• 0:25
  US
• 0:26
  and
• 0:26
  will
• 0:26
  still
• 0:26
  stock
• 0:27
  health
• 0:27
  related
• 0:27
  products
• 0:28
  such
• 0:28
  as
• 0:28
  over
• 0:29
  the
• 0:29
  counter
• 0:29
  cough
• 0:29
  and
• 0:30
  pain
• 0:30
  medications
• 0:31
  or
• 0:31
  first
• 0:31
  a
• 0:32
  care.
• 0:32
  Missing
• 0:33
  from
• 0:33
  their
• 0:33
  aisles,
• 0:34
  however,
• 0:34
  will
• 0:34
  be
• 0:35
  the
• 0:35
  vast
• 0:35
  array
• 0:35
  of
• 0:36
  consumer
• 0:36
  items
• 0:36
  such
• 0:37
  as
• 0:37
  greeting
• 0:37
  cards,
• 0:37
  groceries,
• 0:38
  nail
• 0:39
  polish
• 0:39
  and
• 0:40
  others
• 0:40
  for
• 0:41
  decades
• 0:42
  that
• 0:42
  have
• 0:42
  been
• 0:42
  a
• 0:42
  staple
• 0:43
  of
• 0:43
  CVS
• 0:43
  and
• 0:43
  other
• 0:44
  national
• 0:44
  drugstore
• 0:45
  change
• 0:45
  chains.
• 0:46
  Sorry
• 0:47
  Dave,
• 0:48
  let's
• 0:48
  go
• 0:48
  to
• 0:48
  you.
• 0:49
  What
• 0:49
  do
• 0:49
  you
• 0:49
  think
• 0:49
  of
• 0:50
  CVS's
• 0:51
  overt
• 0:51
  move
• 0:51
  to
• 0:52
  mini
• 0:52
  stores?
• 0:52
  What
• 0:53
  do
• 0:53
  you
• 0:53
  think
• 0:53
  that
• 0:53
  signals
• 0:54
  about
• 0:54
  the
• 0:54
  state
• 0:54
  of
• 0:55
  pharmacy
• 0:55
  retailing?
• 0:57
  So,
• 0:57
  so,
• 0:57
  and
• 0:58
  I'm,
• 0:58
  I'm
• 0:59
  quite
• 0:59
  intrigued
• 1:00
  with
• 1:00
  this
• 1:00
  model.
• 1:01
  I
• 1:01
  think
• 1:01
  we
• 1:01
  all
• 1:01
  know
• 1:02
  that
• 1:02
  the
• 1:02
  drug
• 1:03
  category
• 1:03
  as
• 1:03
  a
• 1:04
  whole
• 1:04
  is
• 1:05
  going
• 1:05
  through
• 1:05
  this
• 1:05
  real
• 1:05
  big
• 1:06
  inflection
• 1:06
  point
• 1:06
  and
• 1:07
  so
• 1:07
  they
• 1:07
  need
• 1:07
  to
• 1:07
  find
• 1:08
  some
• 1:08
  way
• 1:08
  to
• 1:08
  innovate.
• 1:09
  And
• 1:10
  separating
• 1:10
  pharmacy
• 1:11
  from
• 1:11
  the
• 1:11
  convenience
• 1:11
  store
• 1:12
  I
• 1:12
  think
• 1:12
  is
• 1:12
  a
• 1:12
  really
• 1:13
  interesting
• 1:13
  idea
• 1:14
  that
• 1:14
  it's
• 1:15
  been
• 1:15
  a
• 1:15
  long
• 1:15
  time
• 1:15
  coming
• 1:16
  in
• 1:16
  the
• 1:16
  industry,
• 1:17
  especially
• 1:17
  here
• 1:17
  in
• 1:17
  America
• 1:18
  as
• 1:18
  in
• 1:19
  Europe,
• 1:19
  it's
• 1:19
  already
• 1:20
  like
• 1:20
  that.
• 1:20
  And
• 1:21
  so
• 1:22
  currently
• 1:24
  the
• 1:24
  drug
• 1:24
  retailers,
• 1:25
  they
• 1:25
  serve
• 1:26
  different
• 1:26
  purposes
• 1:27
  and
• 1:27
  they
• 1:27
  have
• 1:28
  different
• 1:28
  clients
• 1:30
  and
• 1:30
  in,
• 1:30
  and
• 1:30
  especially
• 1:31
  in
• 1:31
  less
• 1:31
  urban
• 1:32
  spots.
• 1:32
  In
• 1:32
  urban
• 1:32
  spots
• 1:33
  you
• 1:33
  can
• 1:33
  rationalize
• 1:34
  there's,
• 1:35
  you
• 1:35
  do
• 1:35
  it
• 1:35
  all
• 1:36
  in
• 1:36
  one
• 1:36
  like
• 1:36
  a
• 1:37
  one
• 1:37
  stop
• 1:37
  shop
• 1:38
  at
• 1:38
  your
• 1:39
  local
• 1:39
  pharmacy
• 1:40
  to
• 1:40
  get
• 1:41
  food
• 1:41
  as
• 1:41
  well.
• 1:41
  But
• 1:42
  in
• 1:42
  more
• 1:43
  suburban
• 1:43
  areas
• 1:43
  I
• 1:44
  think
• 1:44
  you're
• 1:44
  serving
• 1:45
  different
• 1:45
  clients
• 1:46
  and
• 1:47
  this
• 1:47
  can
• 1:47
  help
• 1:47
  on
• 1:48
  a
• 1:48
  wide
• 1:48
  array
• 1:48
  of
• 1:48
  things.
• 1:49
  It
• 1:49
  can
• 1:49
  reduce
• 1:50
  your
• 1:50
  fixed
• 1:51
  costs
• 1:51
  around
• 1:51
  rent,
• 1:53
  improve
• 1:53
  your
• 1:54
  labor.
• 1:55
  I
• 1:55
  think
• 1:56
  the
• 1:56
  assortment
• 1:56
  will
• 1:57
  have
• 1:57
  a
• 1:57
  huge,
• 1:58
  you
• 1:58
  know,
• 1:59
  positive
• 1:59
  impact
• 2:00
  around
• 2:01
  on
• 2:01
  shelf
• 2:02
  availability
• 2:02
  and
• 2:03
  inventory
• 2:03
  management.
• 2:04
  And
• 2:05
  then
• 2:05
  you
• 2:05
  also
• 2:05
  have
• 2:05
  to
• 2:06
  want
• 2:06
  to
• 2:06
  be
• 2:06
  less
• 2:07
  promotionally
• 2:07
  focused.
• 2:08
  You
• 2:09
  know,
• 2:09
  I'm
• 2:09
  sure
• 2:09
  if
• 2:09
  we
• 2:09
  walk
• 2:10
  into
• 2:10
  not
• 2:10
  even
• 2:10
  a
• 2:11
  cvs,
• 2:11
  but
• 2:11
  really
• 2:12
  any
• 2:13
  drugstore,
• 2:13
  you'll
• 2:14
  see
• 2:14
  there's
• 2:14
  a
• 2:15
  lot
• 2:15
  of
• 2:16
  of
• 2:16
  your
• 2:16
  standard
• 2:17
  household
• 2:17
  goods
• 2:17
  on
• 2:19
  promotion
• 2:20
  which
• 2:21
  really
• 2:21
  drives
• 2:21
  down
• 2:22
  your
• 2:22
  profitability.
• 2:24
  Overall,
• 2:25
  I
• 2:25
  think
• 2:26
  this
• 2:26
  is
• 2:26
  a
• 2:26
  really
• 2:26
  interesting
• 2:27
  concept.
• 2:29
  I
• 2:29
  would
• 2:29
  love
• 2:29
  to
• 2:30
  know
• 2:30
  if
• 2:30
  they're
• 2:30
  having
• 2:30
  some
• 2:31
  sort
• 2:31
  of
• 2:31
  impulse
• 2:32
  buy
• 2:32
  section
• 2:33
  still,
• 2:33
  whether
• 2:33
  that's
• 2:34
  seasonal
• 2:34
  or
• 2:35
  some
• 2:35
  snacking
• 2:36
  or
• 2:37
  some
• 2:37
  sort
• 2:37
  of
• 2:37
  DSD
• 2:38
  piece.
• 2:38
  I
• 2:39
  didn't
• 2:39
  see
• 2:39
  anything
• 2:39
  on
• 2:39
  that.
• 2:40
  That
• 2:40
  would
• 2:40
  be
• 2:41
  something
• 2:41
  that
• 2:41
  I'd
• 2:42
  love
• 2:42
  to
• 2:42
  learn
• 2:42
  more
• 2:42
  about.
• 2:42
  But
• 2:43
  overall
• 2:44
  I'm
• 2:44
  not
• 2:44
  going
• 2:44
  to
• 2:44
  say
• 2:45
  I'm
• 2:45
  bullish
• 2:45
  right
• 2:45
  now,
• 2:46
  but
• 2:46
  I
• 2:46
  think
• 2:46
  it's
• 2:46
  a
• 2:46
  very
• 2:47
  interesting
• 2:48
  concept
• 2:49
  that,
• 2:50
  you
• 2:50
  know,
• 2:50
  with
• 2:50
  a
• 2:50
  12
• 2:51
  store
• 2:51
  pilot.
• 2:51
  Why,
• 2:52
  why
• 2:52
  wouldn't
• 2:52
  they
• 2:52
  do
• 2:52
  it?
• 2:53
  Right,
• 2:53
  right.
• 2:54
  It
• 2:54
  gives
• 2:54
  them
• 2:54
  a
• 2:54
  way
• 2:55
  to
• 2:55
  like
• 2:55
  you
• 2:55
  were
• 2:55
  saying,
• 2:56
  like
• 2:56
  minimize
• 2:57
  theft,
• 2:58
  minimize
• 2:58
  operations
• 2:59
  and
• 2:59
  promotions
• 3:00
  and
• 3:00
  all
• 3:00
  the
• 3:01
  things
• 3:01
  that
• 3:01
  they
• 3:01
  have
• 3:01
  to
• 3:01
  do
• 3:02
  to
• 3:02
  manage
• 3:02
  that
• 3:03
  front
• 3:03
  end
• 3:03
  of
• 3:03
  the
• 3:03
  store
• 3:05
  and
• 3:05
  really
• 3:05
  focus
• 3:06
  on,
• 3:06
  you
• 3:06
  know,
• 3:07
  what's
• 3:07
  bringing
• 3:07
  them
• 3:08
  revenue
• 3:09
  in
• 3:09
  the,
• 3:09
  in
• 3:10
  the
• 3:10
  near
• 3:10
  term.
• 3:10
  And
• 3:11
  that's,
• 3:11
  you
• 3:11
  know,
• 3:11
  the
• 3:11
  pharmacy
• 3:12
  business,
• 3:13
  the
• 3:13
  over
• 3:13
  the
• 3:13
  counter
• 3:14
  business.
• 3:14
  And
• 3:15
  you
• 3:15
  just
• 3:15
  want
• 3:15
  to
• 3:15
  still
• 3:16
  be
• 3:16
  able
• 3:16
  to
• 3:16
  get
• 3:16
  your
• 3:16
  Quest
• 3:17
  protein
• 3:17
  chips
• 3:17
  is
• 3:17
  what
• 3:18
  I'm
• 3:18
  hearing
• 3:18
  when
• 3:18
  you
• 3:18
  pick
• 3:18
  up
• 3:19
  your
• 3:19
  prescription.
• 3:20
  Uh,
• 3:20
  yeah,
• 3:21
  I,
• 3:21
  I,
• 3:21
  I,
• 3:22
  I
• 3:22
  would,
• 3:22
  I
• 3:23
  would
• 3:23
  love
• 3:23
  that.
• 3:23
  I
• 3:23
  love
• 3:24
  the
• 3:24
  big
• 3:24
  bags.
• 3:25
  Yes,
• 3:26
  right.
• 3:26
  Not,
• 3:27
  not
• 3:27
  the
• 3:27
  mini
• 3:27
  grab
• 3:28
  and
• 3:28
  go.
• 3:28
  You
• 3:28
  want
• 3:28
  the
• 3:29
  solid
• 3:29
  size.
• 3:29
  Well,
• 3:30
  we'll,
• 3:30
  we'll
• 3:30
  figure
• 3:31
  out
• 3:31
  how
• 3:31
  they
• 3:31
  can
• 3:31
  make
• 3:32
  a
• 3:32
  CVS
• 3:32
  just
• 3:32
  for
• 3:32
  you,
• 3:33
  Dave.
• 3:33
  Uh,
• 3:33
  but
• 3:33
  I
• 3:34
  mean
• 3:34
  it
• 3:34
  is
• 3:34
  true
• 3:35
  if
• 3:35
  you
• 3:35
  think
• 3:35
  about
• 3:35
  it,
• 3:35
  it's,
• 3:36
  it's
• 3:36
  an
• 3:36
  intentional
• 3:37
  run
• 3:37
  for
• 3:38
  some
• 3:38
  sort
• 3:38
  of
• 3:39
  medical
• 3:40
  need.
• 3:41
  Unless
• 3:41
  you're
• 3:42
  in
• 3:42
  a
• 3:42
  more
• 3:42
  really
• 3:43
  urban
• 3:43
  area
• 3:43
  where
• 3:44
  it's,
• 3:44
  then
• 3:44
  it's
• 3:45
  a
• 3:45
  little
• 3:45
  bit
• 3:46
  more
• 3:46
  convenient.
• 3:46
  So
• 3:47
  I
• 3:47
  think
• 3:47
  this
• 3:47
  model
• 3:48
  is,
• 3:48
  is
• 3:48
  super
• 3:49
  intriguing
• 3:49
  and
• 3:50
  I
• 3:50
  can't
• 3:50
  wait
• 3:51
  to
• 3:51
  experience
• 3:51
  one
• 3:51
  of
• 3:51
  them.
• 3:52
  Right.
• 3:53
  Chris
• 3:53
  Kreitz,
• 3:53
  where
• 3:53
  do
• 3:53
  you
• 3:54
  fall?
• 3:54
  Yeah,
• 3:55
  I
• 3:55
  think
• 3:55
  similar
• 3:56
  in
• 3:56
  line
• 3:56
  with
• 3:56
  what
• 3:57
  Dave
• 3:57
  said,
• 3:58
  you
• 3:59
  know,
• 3:59
  I
• 3:59
  think
• 3:59
  there's
• 3:59
  a
• 4:01
  notion
• 4:01
  that
• 4:01
  the
• 4:02
  long
• 4:02
  term
• 4:03
  pharmacy
• 4:04
  model
• 4:04
  needs
• 4:04
  to
• 4:05
  change.
• 4:05
  I
• 4:05
  think
• 4:05
  this
• 4:06
  is
• 4:06
  experimenting
• 4:07
  to
• 4:07
  say
• 4:07
  what
• 4:08
  could
• 4:08
  it
• 4:08
  look
• 4:08
  like?
• 4:09
  I
• 4:09
  think
• 4:09
  the
• 4:09
  only
• 4:10
  thing
• 4:10
  I'd
• 4:10
  build
• 4:10
  to
• 4:11
  what
• 4:11
  Dave
• 4:11
  said
• 4:11
  is,
• 4:12
  uh,
• 4:13
  I
• 4:13
  think
• 4:13
  there's
• 4:14
  some
• 4:14
  testing
• 4:14
  here
• 4:15
  on
• 4:15
  the
• 4:15
  interaction
• 4:16
  between
• 4:16
  the
• 4:16
  front
• 4:17
  end
• 4:17
  and
• 4:17
  the
• 4:17
  pharmacy
• 4:18
  and
• 4:18
  what
• 4:19
  that
• 4:19
  dynamic
• 4:20
  really
• 4:20
  is.
• 4:20
  I
• 4:20
  think
• 4:20
  everyone
• 4:21
  thinks
• 4:21
  the
• 4:21
  pharmacy
• 4:22
  drives
• 4:22
  the
• 4:22
  front
• 4:23
  end
• 4:23
  and
• 4:23
  I
• 4:24
  think
• 4:24
  this
• 4:24
  is
• 4:24
  kind
• 4:24
  of
• 4:25
  testing
• 4:25
  that
• 4:25
  a
• 4:25
  little
• 4:26
  bit
• 4:26
  to
• 4:26
  say
• 4:27
  if
• 4:27
  we
• 4:27
  take
• 4:27
  out
• 4:28
  all
• 4:28
  of
• 4:28
  the
• 4:28
  front
• 4:28
  end,
• 4:29
  is
• 4:29
  there
• 4:29
  any
• 4:30
  in
• 4:31
  adverse
• 4:31
  impact
• 4:32
  on
• 4:32
  the
• 4:32
  pharmacy
• 4:33
  itself,
• 4:33
  which
• 4:34
  would
• 4:34
  be
• 4:35
  the
• 4:35
  downfall
• 4:35
  of
• 4:36
  this
• 4:36
  concept?
• 4:36
  Right.
• 4:36
  If
• 4:37
  you
• 4:37
  start
• 4:37
  losing
• 4:37
  scripts
• 4:38
  because
• 4:38
  people
• 4:38
  want
• 4:39
  to
• 4:39
  be
• 4:39
  able
• 4:40
  to
• 4:40
  get
• 4:40
  multiple
• 4:40
  things
• 4:41
  on
• 4:41
  that
• 4:41
  shopping
• 4:41
  trip,
• 4:42
  then
• 4:42
  this
• 4:42
  concept
• 4:43
  starts
• 4:43
  to
• 4:43
  unravel.
• 4:44
  So
• 4:44
  I
• 4:44
  think
• 4:45
  they're
• 4:45
  testing
• 4:45
  this,
• 4:45
  they're
• 4:46
  testing,
• 4:46
  you
• 4:46
  know,
• 4:46
  some
• 4:47
  other
• 4:47
  formats
• 4:47
  as
• 4:47
  well.
• 4:48
  I
• 4:48
  think
• 4:48
  this
• 4:48
  is
• 4:48
  more
• 4:48
  exploring.
• 4:49
  You
• 4:50
  know,
• 4:50
  can
• 4:50
  we
• 4:50
  still
• 4:51
  keep
• 4:51
  all
• 4:51
  the
• 4:51
  high
• 4:51
  margin
• 4:52
  health
• 4:53
  sales
• 4:53
  on
• 4:54
  the
• 4:54
  retail
• 4:54
  end
• 4:55
  with
• 4:55
  a
• 4:55
  very
• 4:55
  stripped
• 4:56
  down
• 4:56
  assortment?
• 4:57
  How,
• 4:57
  how
• 4:58
  sharp
• 4:58
  can
• 4:58
  we
• 4:58
  get
• 4:59
  with
• 4:59
  our
• 4:59
  assortment
• 5:00
  before
• 5:00
  we
• 5:00
  start
• 5:00
  to
• 5:01
  lose
• 5:01
  those
• 5:01
  sales?
• 5:02
  And
• 5:02
  will
• 5:03
  it
• 5:03
  have
• 5:03
  any
• 5:03
  inverse
• 5:04
  impact
• 5:04
  on
• 5:05
  our
• 5:05
  scripts
• 5:05
  at
• 5:05
  the
• 5:05
  pharmacy
• 5:06
  if
• 5:06
  we
• 5:06
  don't
• 5:06
  have
• 5:07
  a
• 5:07
  massive
• 5:07
  selection
• 5:08
  of
• 5:08
  health
• 5:08
  products?
• 5:08
  So
• 5:09
  yeah.
• 5:10
  Right.
• 5:11
  It's,
• 5:11
  it's,
• 5:11
  it's
• 5:12
  great
• 5:12
  that
• 5:12
  you
• 5:12
  bring
• 5:13
  that
• 5:13
  up,
• 5:13
  Chris.
• 5:13
  Because
• 5:13
  I
• 5:13
  think
• 5:14
  it's,
• 5:14
  you
• 5:14
  know,
• 5:14
  really
• 5:14
  balancing
• 5:15
  the
• 5:15
  points
• 5:15
  of,
• 5:16
  like,
• 5:16
  we
• 5:16
  know
• 5:16
  there's
• 5:17
  a
• 5:17
  markup
• 5:17
  on
• 5:18
  some
• 5:18
  of
• 5:18
  those,
• 5:19
  you
• 5:19
  know,
• 5:19
  beauty
• 5:19
  products,
• 5:20
  there's
• 5:20
  a
• 5:20
  markup
• 5:21
  on
• 5:21
  the
• 5:21
  food,
• 5:21
  there's
• 5:22
  a
• 5:22
  markup
• 5:22
  on
• 5:22
  those
• 5:22
  convenience
• 5:23
  items
• 5:23
  that
• 5:24
  you're
• 5:24
  talking
• 5:24
  about.
• 5:25
  But
• 5:25
  then
• 5:25
  how
• 5:26
  does
• 5:26
  that
• 5:26
  balance
• 5:27
  with,
• 5:27
  you
• 5:27
  know,
• 5:27
  how
• 5:27
  much
• 5:28
  they're
• 5:28
  losing
• 5:28
  due
• 5:28
  to
• 5:29
  theft,
• 5:29
  how
• 5:30
  much
• 5:30
  the
• 5:30
  real
• 5:30
  estate,
• 5:31
  you
• 5:31
  know,
• 5:31
  per
• 5:31
  square
• 5:32
  foot
• 5:32
  costs
• 5:32
  in
• 5:32
  these
• 5:33
  larger
• 5:33
  CVS
• 5:34
  stores?
• 5:35
  So
• 5:36
  there's
• 5:36
  a
• 5:36
  lot
• 5:36
  going
• 5:36
  on
• 5:37
  there
• 5:37
  that
• 5:37
  you're
• 5:37
  right.
• 5:37
  I
• 5:37
  think
• 5:38
  they'll
• 5:38
  be
• 5:38
  able
• 5:38
  to
• 5:38
  pressure
• 5:39
  test
• 5:39
  here
• 5:39
  with
• 5:40
  those
• 5:40
  12
• 5:40
  stores
• 5:41
  to
• 5:41
  see
• 5:41
  how
• 5:41
  much
• 5:42
  of
• 5:42
  an
• 5:42
  impact
• 5:42
  it
• 5:42
  makes.
• 5:43
  Chris
• 5:44
  Walton,
• 5:45
  you're
• 5:45
  the
• 5:45
  merchant
• 5:45
  of
• 5:46
  the
• 5:46
  group
• 5:46
  here.
• 5:47
  What
• 5:47
  are
• 5:47
  your
• 5:47
  thoughts
• 5:48
  on
• 5:48
  this
• 5:48
  approach
• 5:49
  that
• 5:49
  CVS
• 5:50
  is
• 5:50
  taking
• 5:50
  with
• 5:50
  the
• 5:50
  many
• 5:51
  stores?
• 5:52
  Yeah,
• 5:52
  I
• 5:52
  mean,
• 5:52
  I.
• 5:53
  I
• 5:53
  don't
• 5:53
  think
• 5:53
  it
• 5:53
  says
• 5:53
  that
• 5:53
  much
• 5:54
  about
• 5:54
  the
• 5:54
  pharmacy
• 5:54
  industry.
• 5:55
  I
• 5:55
  think
• 5:55
  when
• 5:55
  you
• 5:55
  get
• 5:55
  right
• 5:55
  down
• 5:56
  to
• 5:56
  it,
• 5:56
  I
• 5:56
  think
• 5:56
  it's
• 5:56
  just
• 5:56
  a
• 5:56
  smart
• 5:57
  segmentation
• 5:58
  approach.
• 5:58
  And
• 5:58
  so
• 5:58
  I
• 5:59
  kind
• 5:59
  of
• 5:59
  would
• 5:59
  echo
• 6:00
  what
• 6:00
  David
• 6:00
  and
• 6:00
  Chris,
• 6:01
  you
• 6:01
  know,
• 6:01
  were
• 6:01
  saying,
• 6:01
  I
• 6:02
  think,
• 6:02
  you
• 6:02
  know,
• 6:02
  on
• 6:03
  the
• 6:03
  small
• 6:03
  format
• 6:03
  of
• 6:03
  just
• 6:04
  being
• 6:04
  a
• 6:04
  pharmacy,
• 6:05
  basically.
• 6:05
  I
• 6:05
  think
• 6:05
  the
• 6:05
  interesting
• 6:06
  thing
• 6:06
  about
• 6:06
  this
• 6:06
  is
• 6:07
  CVS
• 6:07
  has
• 6:07
  kind
• 6:07
  of
• 6:07
  tested
• 6:08
  this
• 6:08
  already
• 6:08
  by
• 6:09
  way
• 6:09
  of
• 6:09
  their
• 6:09
  relationship
• 6:09
  with
• 6:10
  Target.
• 6:10
  So
• 6:10
  they
• 6:10
  know
• 6:11
  if
• 6:11
  they're
• 6:12
  only
• 6:12
  in
• 6:12
  the
• 6:12
  pharmacy
• 6:12
  business,
• 6:13
  what
• 6:13
  the
• 6:14
  operations
• 6:14
  of
• 6:14
  that
• 6:15
  look
• 6:15
  like
• 6:15
  and
• 6:15
  the
• 6:15
  profitability
• 6:16
  of
• 6:16
  that
• 6:16
  looks
• 6:16
  like.
• 6:16
  So
• 6:16
  that
• 6:17
  gives
• 6:17
  me
• 6:17
  credence
• 6:17
  to
• 6:17
  understand
• 6:18
  that
• 6:18
  they
• 6:18
  know
• 6:18
  what.
• 6:18
  They
• 6:19
  know
• 6:19
  what
• 6:19
  they're
• 6:19
  up
• 6:19
  against.
• 6:19
  But
• 6:19
  to
• 6:20
  Chris's
• 6:20
  point,
• 6:20
  they
• 6:21
  have
• 6:21
  to
• 6:21
  understand
• 6:21
  what
• 6:21
  the
• 6:22
  traffic
• 6:22
  dynamics
• 6:23
  are
• 6:23
  that
• 6:23
  comes
• 6:24
  with
• 6:24
  this
• 6:24
  type
• 6:24
  of
• 6:25
  format.
• 6:25
  But
• 6:25
  the
• 6:26
  other
• 6:26
  thing
• 6:26
  the
• 6:26
  article
• 6:26
  says,
• 6:27
  which
• 6:27
  is
• 6:27
  interesting,
• 6:27
  I
• 6:28
  think
• 6:28
  it's
• 6:28
  important
• 6:28
  to
• 6:28
  point
• 6:28
  out,
• 6:28
  is
• 6:29
  they
• 6:29
  still
• 6:29
  plan
• 6:30
  to
• 6:30
  open
• 6:30
  30
• 6:30
  traditional
• 6:31
  stores,
• 6:31
  which
• 6:31
  is
• 6:32
  three
• 6:32
  times
• 6:32
  the
• 6:32
  amount
• 6:32
  that
• 6:33
  they're
• 6:33
  going
• 6:33
  to
• 6:33
  open
• 6:33
  up
• 6:34
  this
• 6:34
  pilot.
• 6:35
  So
• 6:35
  I
• 6:35
  think
• 6:35
  the
• 6:36
  other
• 6:36
  thing
• 6:36
  that
• 6:36
  I
• 6:36
  call
• 6:36
  out,
• 6:36
  and
• 6:37
  because
• 6:37
  I
• 6:37
  made
• 6:37
  this
• 6:37
  mistake,
• 6:38
  I'm
• 6:38
  interviewing
• 6:39
  CVS's
• 6:40
  chief
• 6:40
  merchant
• 6:41
  at
• 6:41
  Shop
• 6:41
  Talk
• 6:41
  on
• 6:42
  stage.
• 6:42
  Yeah,
• 6:42
  and
• 6:42
  I
• 6:43
  actually
• 6:43
  made
• 6:43
  the
• 6:43
  mistake
• 6:43
  in
• 6:43
  my
• 6:44
  prep
• 6:44
  with
• 6:44
  him.
• 6:44
  I
• 6:44
  said,
• 6:44
  like,
• 6:45
  you
• 6:45
  know,
• 6:45
  but
• 6:45
  the
• 6:45
  pharmacy
• 6:45
  is
• 6:46
  such
• 6:46
  an
• 6:46
  important
• 6:46
  aspect
• 6:47
  of
• 6:47
  the
• 6:47
  traffic
• 6:47
  driving.
• 6:48
  And
• 6:48
  he's
• 6:48
  like,
• 6:48
  no,
• 6:49
  it's.
• 6:49
  It's
• 6:49
  not
• 6:49
  always
• 6:50
  the
• 6:50
  case.
• 6:50
  And
• 6:50
  to
• 6:50
  David's
• 6:51
  point,
• 6:51
  in
• 6:51
  urban
• 6:51
  areas,
• 6:52
  it's
• 6:52
  flipped.
• 6:53
  So,
• 6:53
  you
• 6:53
  know,
• 6:54
  the.
• 6:54
  The
• 6:54
  pharmacy
• 6:54
  is
• 6:55
  less
• 6:55
  important
• 6:55
  than
• 6:55
  the
• 6:55
  grabbing
• 6:56
  go.
• 6:56
  So.
• 6:57
  So
• 6:57
  I
• 6:57
  think,
• 6:57
  you
• 6:57
  know,
• 6:57
  you.
• 6:58
  It's
• 6:58
  just
• 6:58
  about
• 6:58
  balancing
• 6:59
  that
• 6:59
  out
• 6:59
  and
• 6:59
  understanding
• 7:00
  the
• 7:00
  puts
• 7:00
  and
• 7:00
  the
• 7:00
  takes
• 7:00
  with
• 7:01
  it
• 7:01
  across
• 7:01
  a
• 7:01
  smart
• 7:02
  segmentation
• 7:02
  strategy.
• 7:03
  So
• 7:03
  that's
• 7:03
  what
• 7:03
  this
• 7:03
  is
• 7:03
  all
• 7:04
  about
• 7:04
  to
• 7:04
  me.
• 7:05
  Yeah,
• 7:05
  I
• 7:05
  think.
• 7:05
  I
• 7:05
  think
• 7:06
  the
• 7:06
  only
• 7:06
  thing
• 7:06
  I'D
• 7:06
  add
• 7:07
  here
• 7:07
  at
• 7:07
  the
• 7:07
  end
• 7:07
  is
• 7:07
  that
• 7:08
  they
• 7:08
  also
• 7:09
  still
• 7:09
  have
• 7:09
  the
• 7:09
  advantage
• 7:10
  in
• 7:10
  a
• 7:10
  lot
• 7:10
  of
• 7:11
  places
• 7:11
  of
• 7:11
  being
• 7:12
  the
• 7:12
  only
• 7:12
  place
• 7:12
  that
• 7:12
  you
• 7:13
  can
• 7:13
  go
• 7:13
  to
• 7:13
  get
• 7:13
  your
• 7:13
  prescription
• 7:14
  within
• 7:14
  a
• 7:15
  matter
• 7:15
  of
• 7:15
  minutes
• 7:16
  or
• 7:16
  hours
• 7:17
  where
• 7:18
  there's
• 7:18
  not
• 7:19
  same
• 7:19
  day
• 7:19
  delivery
• 7:20
  of
• 7:20
  prescriptions.
• 7:21
  However,
• 7:22
  I
• 7:22
  think
• 7:22
  that's,
• 7:23
  that
• 7:23
  still
• 7:24
  is
• 7:24
  not
• 7:24
  something
• 7:24
  that
• 7:24
  they
• 7:24
  can
• 7:25
  rest
• 7:25
  their
• 7:26
  laurels
• 7:27
  on
• 7:27
  either.
• 7:27
  Because
• 7:28
  I
• 7:28
  think
• 7:28
  we're
• 7:28
  going
• 7:28
  to
• 7:28
  start
• 7:29
  to
• 7:29
  see
• 7:29
  increasing
• 7:30
  same
• 7:31
  day
• 7:31
  delivery.
• 7:31
  We're
• 7:31
  seeing
• 7:32
  that
• 7:32
  with
• 7:32
  Walmart,
• 7:33
  with
• 7:33
  Amazon,
• 7:34
  with,
• 7:34
  you
• 7:34
  know,
• 7:34
  Walgreens.
• 7:35
  And
• 7:36
  if
• 7:36
  as
• 7:36
  those,
• 7:37
  those
• 7:37
  timelines
• 7:38
  get
• 7:38
  reduced
• 7:39
  and
• 7:39
  you're
• 7:39
  starting
• 7:40
  to
• 7:40
  see
• 7:40
  more
• 7:40
  same
• 7:40
  day
• 7:41
  delivery,
• 7:41
  I
• 7:41
  think
• 7:42
  CVS
• 7:42
  being
• 7:43
  the
• 7:43
  place
• 7:43
  where
• 7:43
  they're
• 7:44
  seeing,
• 7:44
  you
• 7:44
  know,
• 7:44
  80%
• 7:45
  of
• 7:45
  traffic
• 7:46
  in
• 7:46
  some
• 7:46
  stores
• 7:46
  is
• 7:47
  due
• 7:47
  to
• 7:47
  the
• 7:47
  pharmacy
• 7:48
  and
• 7:48
  prescription.
• 7:49
  Like
• 7:49
  will
• 7:49
  they
• 7:49
  be
• 7:49
  able
• 7:50
  to
• 7:50
  still
• 7:50
  rely
• 7:50
  on
• 7:51
  that?
• 7:51
  And
• 7:51
  once,
• 7:51
  you
• 7:52
  know,
• 7:52
  if
• 7:52
  you
• 7:52
  have
• 7:52
  a
• 7:52
  small
• 7:52
  format
• 7:53
  that's
• 7:53
  only
• 7:53
  pharmacy,
• 7:54
  does
• 7:55
  that
• 7:55
  go
• 7:55
  away
• 7:55
  when
• 7:56
  that
• 7:56
  can
• 7:56
  be
• 7:56
  delivered
• 7:57
  to
• 7:57
  my
• 7:57
  house,
• 7:57
  especially
• 7:58
  when
• 7:58
  you're
• 7:58
  not
• 7:58
  feeling
• 7:59
  well?
• 7:59
  I
• 8:00
  think
• 8:00
  that's
• 8:00
  something
• 8:00
  too
• 8:01
  that
• 8:01
  will
• 8:01
  have
• 8:01
  to
• 8:02
  be
• 8:02
  factored
• 8:02
  into
• 8:02
  some
• 8:03
  of
• 8:03
  these
• 8:03
  decisions
• 8:03
  in
• 8:04
  the
• 8:04
  term.
• 8:05
  Yeah,
• 8:05
  and
• 8:05
  hopefully
• 8:06
  they're
• 8:06
  thinking
• 8:06
  about
• 8:06
  that
• 8:06
  in
• 8:06
  the
• 8:07
  design
• 8:07
  of
• 8:07
  this
• 8:08
  prototype
• 8:08
  too.
• 8:09
  Like,
• 8:09
  you
• 8:09
  know,
• 8:09
  the
• 8:09
  fact,
• 8:10
  the
• 8:10
  fact
• 8:10
  that
• 8:10
  it's
• 8:10
  such
• 8:10
  a
• 8:11
  small
• 8:11
  assortment
• 8:11
  should
• 8:12
  make
• 8:12
  the
• 8:12
  delivery
• 8:12
  and
• 8:12
  pickup
• 8:13
  of
• 8:13
  those
• 8:13
  goods
• 8:14
  that
• 8:14
  much
• 8:14
  easier
• 8:14
  to
• 8:14
  operate
• 8:15
  as
• 8:15
  well.