Fighting the Connected Society, CVS Health expands out of the store with CVS vending machines
We are seeing another sign of brick & mortar retailers embracing creativity to expand their business beyond the physical store format. While this could lend a helpful boost to the shift to mobile payments from credit and debit cards, we see it more as retailers contending with headwinds associated with our Connected Society investing theme. Vending machine products being offered by CVS Health (CVS) are those that one might forget when traveling, or represent an impulse buy. This is a far smarter move in our opinion than the Best Buy (BBY) vending machines that offer higher priced headphones and tablets. One sign to watch in determining CVS’s success in fending off Amazon (AMZN) and others will be if CVS expands the program beyond the initial rollout of what appears to be up to 75 machines.
CVS is rolling out new vending machines at “select landmark locations” in the Northeast, like airports — including New York City’s LaGuardia Airport — public transit stations, and college campuses. The first 25 machines will be ready for business between now and the end of October, and CVS is considering adding 50 or more locations elsewhere in the country in the future.
They’ll be stocked with things like over-the-counter medications, beauty and personal care products, eye care and oral health care products, first aid items, batteries, phone chargers, earbuds, and healthy snacks and beverages.
“These new vending machines allow us to make our innovative CVS Brand products available to customers outside of our store locations for the very first time,” said Cia Tucci, Vice President of Store Brands and Quality Assurance at CVS Health.
Source: Need An Aspirin Or Some Deodorant? CVS Vending Machines Offer On-The-Go Options – Consumerist
