Anyone who works for a CVS retail location has been listening for the last couple years about how the economy is having such a negative impact and that's why you're not able to actually staff your stores sufficiently. It also explains those insulting pay raises that have dribbled out of corporate's overstuffed mouths. That being said let's take a look at the real numbers. Since I come from the pharmacy end I will concentrate on those numbers rather than front store, although front store was still ahead for the year.
Every quarter of 2010 showed sales growth in the retail pharmacy; Q1 3.6%, Q2 4.2%, Q3 4.1% and Q4 3.1%, all numbers representing increases over the previous year's quarterly results. Those are overall sales numbers, which include new stores that didn't exist the year before. The REAL tale is in same-store sales, or a direct comparison of existing stores and how they grew or declined compared to last year.
Every quarter AGAIN showed growth in same-store sales; Q1 3.7%, Q2 2.9%, Q3 3.0% and Q4 2.0%. And the real topper is that they claim that sales were hurt by new generics on the market! So imagine what the numbers would have been. Of course what they don't mention is that while generics cost less and therefore drive down gross sales numbers the mark-up on generics is many times GREATER than brand-name, meaning profit margin goes up exponentially on generics. So every time your district managers tell you that sales are down you know they are completely full of shit. Your efforts are increasing sales while you are doing it with fewer hours. What they don't talk about is the 800 pound gorilla in the room-CAREMARK!
CVS is losing their shirts on Caremark's PBM, or pharmacy business management. You know, the Caremark prescription service where you can't talk to anyone on American soil because it's all handled by call centers in Sri Lanka or some other God-forsaken place. The company is trying to get blood out of the stores to cover for the fact that they fucked up by buying Caremark and continue to lose on the deal. If you Google the overall numbers it looks like the company is really having a hard time with the economy, but a little break down of the numbers shows that it's Caremark that is the rock around the neck of the company. The stores are doing well. In fact Retail Pharmacy Quarterly, a trade publication, says that CVS's retail operations had a better year in 2010 than their two main competitors Walgreen's and Rite Aid when compared to 2009.
Next time you have to call Caremark because of a problem with insurance you should tell the Indian on the other end (who probably goes by the name of Billy or Sally or Steve or Peggy while you can practically hear the sitar music playing in the background and smell the curry through the phone line) that they owe you a great big thank you because the stores are carrying the PBM segment on their collective backs.
To my fellow retail pharmacy grunts I say enjoy your 2% raises, bitches.
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