Dick’s accelerating outdoor vision
Dick’s Sporting Goods opened its Field & Stream prototype store last summer and next month the first of eight stores planned for 2014 arrives on the shores of Lake Erie.
The northwestern Pennsylvania community will be home to Dick’s third Field & Stream store with an opening set for June 13. Dick’s began experimenting with the potential new growth format last August when it opened its first location near its home town of Pittsburgh in the suburb of Cranberry Township. A second location opened later in 2013 in Crescent Springs, Ky.
Dick’s indicated earlier this year that it was seeing very positive reactions and enthusiasm from customers, vendors and associates based on the first two stores, and alluded to big things to come for the outdoor concept.
“Our grand openings were the most successful grand openings of any stores we’ve ever opened,” Dick’s Sporting Goods president and COO Joe Schmidt said earlier this year when the company released fourth quarter results. “The vendor community is also excited about Field & Stream, not only about the look and feel of the stores but also about our extremely talented associates, many of whom have run their own outdoor businesses prior to joining the Field & Stream team.”
With eight openings planned this year, Schmidt said the company is very excited about a store format CFO Andre Hawaux said is more productive than Dick’s conventional stores.
“Our two Field & Stream stores are more productive than our Dick’s stores generating higher sales per square foot, are performing above plan and are profitable on a four wall basis,” Hawaux said. “We have clearly created disruption in this space and believe there is a much to be gained here.”
Drugstore chain Duane Reade testing iBeacon technology
New York — The Duane Reade drugstore chain has launched an iBeacon pilot in several stores in the New York area. The test was announced by Tim McCauley, senior director of mobile commerce at Walgreens, parent company of Duane Reade, during a presentation at the Mcommerce Summit in New York City.
“In Duane Reade, we now have iBeacon in our Duane Reade app, and we have a ten-store pilot in this market going on right now,” said McCauley
The iBeacon technology pilot is part of an in-store mobile coupon initiative at Duane Reade that lets shoppers digitally clip coupons and redeem them via a bar code on a smartphone.
Pharmacy sales boost CVS profit in Q1
Woonsocket, R.I. – Net income at CVS Caremark Corp. increased 18.3% to $1.1 billion in the first quarter of fiscal 2014, compared with approximately $1 billion a year earlier. Pharmacy services and retail pharmacy segments both benefited from the impact of increased generic drugs dispensed and slower growth in expenses.
Net income was also positively impacted by rebate improvement in the pharmacy services segment and an increase in front store gross margins in the retail pharmacy segment. In addition, net revenues performed well, rising 6.3% to $32.69 billion from $30.75 billion. The increase was primarily driven by growth in CVS’ specialty pharmacy business, as well as drug cost inflation, new customers and new products.
Same-store sales grew 1.4%. CVS said same-store sales growth was slowed by a weaker-than-expected flu season and severe weather in much of the U.S.
“We once again posted a very strong quarter, with solid results across the enterprise,” said Larry Merlo, president and CEO of CVS. “I’m particularly pleased with the exceptional growth in the PBM, especially the growth of the specialty pharmacy business. Additionally, with the substantial amount of free cash we generated during the quarter, we remain confident in our ability to achieve our 2014 goals.”