Later this month, CVS Health (NYSE:CVS) will begin rebranding 42 Dallas-area Target (NYSE:TGT) store pharmacies. The transformation is part of last year's sale of Target's pharmacy business to CVS for $1.9 billion.
CVS is already the largest pharmacy chain in North Texas, owning 32 percent of the market share, reported The Dallas Morning News business blog. CVS expects to complete local store conversions by May.
Target was a small player in the pharmacy business and bowed out to CVS, which already has more than 80 million customers.
"Now we have the best of both worlds," Target CEO Brian Cornell said at a conference in Dallas last month, reported The Dallas Morning News blog. "We still get the traffic from the pharmacy, but we can focus on what we're known for." Cornell also reported that pharmacy used to be a break-even business for the big-box retailer, but since the sale to CVS, it is contributing to earnings.
Cornell made the decision to sell Target's in-store pharmacies last year in order to allow the retailer to focus on its core businesses, one of which is "Wellness."
Rebranding of pharmacies in Target's North Carolina stores began in February. As of last week, the company had finished rebranding 11 locations into MinuteClinic walk-in medical clinics. The retailer expects to be done converting all 1,672 stores around the country by early July. In total, the change will increase CVS's footprint by 20 percent.
-See this Dallas Morning News blog
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