CVS Closing Dozens of Pharmacies Inside Target

[ClownLoach]

All of that occurred in 2020. By 2021, if anything was still closed, it was for business reasons, as political pressure to stay closed was basically zero by then.

The panic buying had also subsided by mid-2021 at the latest.

I doubt Target and other "essential" stores would still be riding on that momentum a year later.

Yes, Target rode that momentum well into 2021. Customers got used to shopping there in 2020 and even after other places opened back up many continued with Target.

Also recall as those other places opened back up they ran limited hours. You'd go into them and they'd have minimal staff, the vibe was just off, Bed Bath and Beyond was tanking, these department store and other chains had cut marketing due to the losses from being closed during lockdowns, meanwhile you had the fully stocked vibrant alive feeling Target who kept good hours- 10 PM etc. and was spending a ton of its windfall on marketing to keep reaching the customer. Target got handed a great hand and played its hand extremely well in 2020-2021.

This is not unlike how Stater got such great momentum out of the SoCal strike in 2005 or whenever it was. By your logic above once Vons/Ralphs/Albertsons reopened Stater should have reverted back to "that underperforming barely profitable (go review their old financials- they had public debt and issued financials to the public) chain of plain jane stores that are like a step child to the major chains" but that did not happen- Stater picked up momentum when the other chains were closed and kept that momentum going for decades after... put money into the stores on remodels, invested in labor, invested in improving quality/mix... and to this day that is continuing.

The Stater comparison is 100% dead on. No way that they would still be here intact if they hadn't been able to absorb that business and then use the proceeds to improve their operations and retain the new customers. They would have likely been absorbed by either Safeway or Kroger and whatever few stores were kept would be Ralphs or Vons. Instead they're now ahead of Ralphs in volume based on all the sales figures available, and would be #1 in SoCal if Albertsons and Safeway hadn't merged.

[HCal]

All of that occurred in 2020. By 2021, if anything was still closed, it was for business reasons, as political pressure to stay closed was basically zero by then.

The panic buying had also subsided by mid-2021 at the latest.

I doubt Target and other "essential" stores would still be riding on that momentum a year later.

Yes, Target rode that momentum well into 2021. Customers got used to shopping there in 2020 and even after other places opened back up many continued with Target.

Also recall as those other places opened back up they ran limited hours. You'd go into them and they'd have minimal staff, the vibe was just off, Bed Bath and Beyond was tanking, these department store and other chains had cut marketing due to the losses from being closed during lockdowns, meanwhile you had the fully stocked vibrant alive feeling Target who kept good hours- 10 PM etc. and was spending a ton of its windfall on marketing to keep reaching the customer. Target got handed a great hand and played its hand extremely well in 2020-2021.

This is not unlike how Stater got such great momentum out of the SoCal strike in 2005 or whenever it was. By your logic above once Vons/Ralphs/Albertsons reopened Stater should have reverted back to "that underperforming barely profitable (go review their old financials- they had public debt and issued financials to the public) chain of plain jane stores that are like a step child to the major chains" but that did not happen- Stater picked up momentum when the other chains were closed and kept that momentum going for decades after... put money into the stores on remodels, invested in labor, invested in improving quality/mix... and to this day that is continuing.

The Stater comparison is 100% dead on. No way that they would still be here intact if they hadn't been able to absorb that business and then use the proceeds to improve their operations and retain the new customers. They would have likely been absorbed by either Safeway or Kroger and whatever few stores were kept would be Ralphs or Vons. Instead they're now ahead of Ralphs in volume based on all the sales figures available, and would be #1 in SoCal if Albertsons and Safeway hadn't merged.

The difference is that Stater invested the proceeds from the boost in business into improving their stores. What did Target do with the proceeds from the boost they got from COVID? They don't seem to have made any significant improvements. Without making positive changes, the momentum is not going to continue.

[ClownLoach]

Yes, Target rode that momentum well into 2021. Customers got used to shopping there in 2020 and even after other places opened back up many continued with Target.

Also recall as those other places opened back up they ran limited hours. You'd go into them and they'd have minimal staff, the vibe was just off, Bed Bath and Beyond was tanking, these department store and other chains had cut marketing due to the losses from being closed during lockdowns, meanwhile you had the fully stocked vibrant alive feeling Target who kept good hours- 10 PM etc. and was spending a ton of its windfall on marketing to keep reaching the customer. Target got handed a great hand and played its hand extremely well in 2020-2021.

This is not unlike how Stater got such great momentum out of the SoCal strike in 2005 or whenever it was. By your logic above once Vons/Ralphs/Albertsons reopened Stater should have reverted back to "that underperforming barely profitable (go review their old financials- they had public debt and issued financials to the public) chain of plain jane stores that are like a step child to the major chains" but that did not happen- Stater picked up momentum when the other chains were closed and kept that momentum going for decades after... put money into the stores on remodels, invested in labor, invested in improving quality/mix... and to this day that is continuing.

The Stater comparison is 100% dead on. No way that they would still be here intact if they hadn't been able to absorb that business and then use the proceeds to improve their operations and retain the new customers. They would have likely been absorbed by either Safeway or Kroger and whatever few stores were kept would be Ralphs or Vons. Instead they're now ahead of Ralphs in volume based on all the sales figures available, and would be #1 in SoCal if Albertsons and Safeway hadn't merged.

The difference is that Stater invested the proceeds from the boost in business into improving their stores. What did Target do with the proceeds from the boost they got from COVID? They don't seem to have made any significant improvements. Without making positive changes, the momentum is not going to continue.

They remodeled over 1,000 stores in 2021-2022 alone for starters? And spent $5 Billion on more behind the scenes type remodel work in 2023 for sortation centers and other processes to simplify and improve their omnichannel capabilities, plus almost 200 more full remodels? And added new Distribution Centers like the behemoth near Perris on I-215? And replaced their entire POS system without one hiccup? Target has been criticized for investing too much into their business and not just taking the profit. Very confused how anyone could perceive they haven't reinvested.

[storewanderer]

Two stores in my area are pretty screwed up since the remodels, especially the Reno Store operationally. As far as the Sparks Store, it does not flow as well, department sizes are messed up, and layouts don't make sense.

The Carson City unit is unchanged since the remodel.

So yes they've reinvested and I don't think anyone is denying that but what good has it done? Do people perceive Target more positively today than in 2021? How is employee morale (take a spin over to Reddit...)? Not much positive to say about the direction of Target since 2021 as far as quality of operation and attitude is concerned, in my opinion. Maybe if I had that nice AZ Super nearby I'd have a different opinion.

[veteran+]

The Stater comparison is 100% dead on. No way that they would still be here intact if they hadn't been able to absorb that business and then use the proceeds to improve their operations and retain the new customers. They would have likely been absorbed by either Safeway or Kroger and whatever few stores were kept would be Ralphs or Vons. Instead they're now ahead of Ralphs in volume based on all the sales figures available, and would be #1 in SoCal if Albertsons and Safeway hadn't merged.

The difference is that Stater invested the proceeds from the boost in business into improving their stores. What did Target do with the proceeds from the boost they got from COVID? They don't seem to have made any significant improvements. Without making positive changes, the momentum is not going to continue.

They remodeled over 1,000 stores in 2021-2022 alone for starters? And spent $5 Billion on more behind the scenes type remodel work in 2023 for sortation centers and other processes to simplify and improve their omnichannel capabilities, plus almost 200 more full remodels? And added new Distribution Centers like the behemoth near Perris on I-215? And replaced their entire POS system without one hiccup? Target has been criticized for investing too much into their business and not just taking the profit. Very confused how anyone could perceive they haven't reinvested.

Of course that is all true but......................

As a shopper in my area even more than a 5 miles radius...................I see nothing. I see no improvements in operations, customer service, inventory conditions, variety, etc.

[HCal]

They remodeled over 1,000 stores in 2021-2022 alone for starters? And spent $5 Billion on more behind the scenes type remodel work in 2023 for sortation centers and other processes to simplify and improve their omnichannel capabilities, plus almost 200 more full remodels? And added new Distribution Centers like the behemoth near Perris on I-215? And replaced their entire POS system without one hiccup? Target has been criticized for investing too much into their business and not just taking the profit. Very confused how anyone could perceive they haven't reinvested.

Other than the remodels, customers aren't going to notice most of those changes. New sortation centers and distribution centers might help Target be more efficient and save money, but they don't improve the customer experience. Unlike Stater, which invested in better quality products and better service, Target seems to have invested in back-end things. I can't say that my experience going to Target is noticeably different than it was in 2019.

[storewanderer]

They remodeled over 1,000 stores in 2021-2022 alone for starters? And spent $5 Billion on more behind the scenes type remodel work in 2023 for sortation centers and other processes to simplify and improve their omnichannel capabilities, plus almost 200 more full remodels? And added new Distribution Centers like the behemoth near Perris on I-215? And replaced their entire POS system without one hiccup? Target has been criticized for investing too much into their business and not just taking the profit. Very confused how anyone could perceive they haven't reinvested.

Other than the remodels, customers aren't going to notice most of those changes. New sortation centers and distribution centers might help Target be more efficient and save money, but they don't improve the customer experience. Unlike Stater, which invested in better quality products and better service, Target seems to have invested in back-end things. I can't say that my experience going to Target is noticeably different than it was in 2019.

That's the way to measure it.

The experience of a Stater customer in 2003 vs. 2008 was VERY different. By 2008, Stater had remodeled the majority of its stores, upgraded bakery/deli, had increased staffing/service levels (due to more customers) and was improving its marketing.

Target 2019 vs. Target 2024- what is different? I see more out of stocks, worse employee attitudes, more disorganized stores with less logical layouts, a decline in employee uniform appearance (though I did just hear they are phasing out those red vests), and less competitive pricing.

Wal Mart 2019 vs. 2024- same old same old...

[norcalriteaidclerk]

Word is that CVS is removing the pharmacy from the small-format Target in midtown Sacramento(former Officemax at 1717 J)and transferring prescriptions to the East Sacramento conventional CVS(5039 Folsom,mid-2000's former Longs with Walgreens-esque architecture).This is just months after 1701 K closed.

Makes you wonder about the future of that small-format Target which isn't too far from the former Broadway Gemco.