A New Direction for CVS
CVS Caremark Corp will be testing a new store concept of "prestige beauty" products normally only found at department stores. Women's Wear Daily (WWD) reported that the stores will be named Beauty 360 and will be built either along side of existing CVS pharmacies or set up as separate stores inside the stores.
Eileen Howard Dunn, senior VP and corporate communications and community relations of CVS, said the stores will carry 32 lines of high-end beauty lines as well as fragrances, but did not name the brands.
Along with cosmetics, additional services such as manicures and hand massages may also be included in the Beauty 360 package as its creators aim to make it a top destination for shoppers.
Cheryl Mahoney, vice president of merchandising, told WWD, "Sixty percent of the female population lives within 5 miles of a CVS store," she said. "One of the things that has made CVS a success is listening to our customers. She wants to shop where she wants to shop. She's buying mass cosmetics and she's also buying prestige."
A Wise Direction?
It is hard to imagine during the recent trend of shoppers trading down to less expensive products that CVS would expand in this direction, but according to reports, the high-end cosmetic and personal-care shoppers are not willing to compromise on products they believe in. Sales in this segment have continued to rise even during the hard economical times.
Whether or not this trend will continue will depend on consumer reaction to rising prices come September.
Even High-End Shoppers Like Deals
One thing CVS does seem to understand is the value of rewarding its regular shoppers. Currently its "ExtraCare" and "ExtraCare Bucks" is a huge success, bringing customers back into its stores sometimes on a bi-weekly basis. So far, nothing has been said about the promotional direction of Beauty 360, but if it at all mirrors CVS' current packages for its pharmacies it would certainly cause a consumer stir and could possibly influence mid-line shoppers to trade up.
It will be difficult for CVS to not move in a similar promotional direction, especially with the close proximity of its Beauty360 stores. Shoppers may expect similar rewards programs. Whether or not product buyers for the new concept will be able to negotiate similar deals from the beauty brands they plan to carry is unknown.
It is my opinion that the Beauty 360 will be a success if CVS continues to use savvy promotional plans to attract shoppers. Brand loyalty in beauty cosmetics remains steady. Convenience is surely on the side of CVS and if the company can prove to beauty shoppers that they can offer something equal to or beyond what department stores can offer, Beauty 360 should do well.
Related:
Speak Out Do You Think Beauty 360 Will Work?
See Also: Moving Into Prestige
I do think CVS’s plan for 360 would be a great success if they follow through with a
a full time nail tech. Another draw card would
be a certified makeup consultant. In the better department stores, I always enjoy having them advise me and pamper with what they think looks right for me. Plus I always
buy more when they do!
No, I don’t think it will work. CVS is NOT known for its customer service. I find it the unfriendliest store in my neighborhood. Also, when I purchase my high end cosmetics, I will go to my favorite high end department stores.