# In-Store Pharmacy Partnerships The Target Pharmacy Business is Now Operated by CVS By Laura McQuarrie | Published 2015-12-17 | Business Source: Trend Hunter, https://www.trendhunter.com/trends/target-pharmacy References: [mprnews.org](http://www.mprnews.org/story/2015/07/29/target-cvs-pharmacy-switch) & [prnewswire](http://www.prnewswire.com/news-releases/cvs-health-and-target-announce-completed-acquisition-of-targets-pharmacy-and-clinic-businesses-300193550.html) While the [Target](https://www.trendhunter.com/trends/target-circle-loyalty) pharmacy business was successful in earning more than $4 billion in sales, the retailer has since decided to shut down the operation as a cost-saving measure. Rather than operating its own pharmacy business, Target is having [CVS](https://www.trendhunter.com/trends/costvantage) occupy these existing retail spaces in more than 1,500 retail stores. In the style of Target's "Pay Less" promise to consumers, CVS is also promising to offer [low-cost generic drugs](https://www.trendhunter.com/trends/publix-pharmacy-discount-finder) to shoppers. Similarly, CVS will be running its own rewards program as a replacement for Target's RedCard. With CVS' new loyalty program in place, Target shoppers will be able to earn discounts with the home goods retailer. This is not the first time that pharmacy businesses have been sold to CVS, but this cost-saving pharmacy venture promises new benefits for Target shoppers. ## Trend Insights (Trend Hunter) - Score: 1.6/10 - Popularity: 16% | Activity: 25% | Freshness: 8% - Audience gender: 50% men, 50% women - Primary generations: Millennial, Gen X - Top markets: North America ## Categories [Trend Hunter](https://www.trendhunter.com/trends) > [Business](https://www.trendhunter.com/business) > [Retail](https://www.trendhunter.com/retail) ## Key Themes ### Key Themes Behind This Trend - **In-store Pharmacy Partnerships:** Target's partnership with CVS to operate in-store pharmacies presents an opportunity for other retailers to collaborate with established pharmacy chains, reducing costs and expanding customer benefits. - **Low-cost Generic Drugs:** The promise of offering low-cost generic drugs by CVS highlights the growing trend of affordability and accessibility in the pharmaceutical industry, creating opportunities for companies to address the rising demand for affordable healthcare solutions. - **Pharmacy Loyalty Programs:** The implementation of CVS' loyalty program as a replacement for Target's RedCard demonstrates the increasing importance of customer loyalty and retention in the pharmacy retail sector, calling for innovative loyalty programs that deliver personalized rewards and benefits. ### Where This Applies - **Retail:** The Target-CVS partnership opens doors for further collaboration between retailers and pharmacy chains, allowing the retail industry to enhance customer experiences and drive additional revenue streams through in-store pharmacies. - **Pharmaceuticals:** The demand for low-cost generic drugs and the evolving landscape of in-store pharmacy operations present a disruptive opportunity for pharmaceutical companies to explore innovative pricing models and distribution strategies. - **Healthcare:** The convergence of retail and pharmacy services, coupled with loyalty programs in the healthcare sector, gives healthcare providers an opportunity to engage patients in a more holistic and convenient way, leading to improved patient outcomes and increased satisfaction. ## Related on Trend Hunter - [Transparent Pharmacy Reimbursement Models](https://www.trendhunter.com/trends/costvantage.md) - [Refreshed Retail Initiatives](https://www.trendhunter.com/trends/target-circle-loyalty.md) - [Virtual Pharmaceutical Services](https://www.trendhunter.com/trends/pharmacy-and-health-clinics.md) - [Sustainable Medication Expansions](https://www.trendhunter.com/trends/cabinet-health.md) - [Refreshed Private Label Products](https://www.trendhunter.com/trends/cvs-brand-products.md) - [Pharmacy Pet Product Expansions](https://www.trendhunter.com/trends/pet-wellness-products.md) - [Healthcare Management Retailer Apps](https://www.trendhunter.com/trends/cvs-health-app.md) - [Low-Cost Telehealth Pharmacy Brands](https://www.trendhunter.com/trends/redbox-rx.md) - [Retailer-Backed Rewards Cards](https://www.trendhunter.com/trends/target-circle.md)