April 29, 2002

CVS: A Prescription for Success!

Holland & Knight Newsletter
Christopher C. Brockman

America's #1 pharmacy is on the move, and Holland & Knight LLP is helping to drive the moving van.

CVS/Pharmacy, the nation's largest pharmacy with 4,000 stores in 32 states and the District of Columbia, is expanding and has enlisted Holland & Knight to complete the legal work involved with the new sites.

Holland & Knight is currently helping CVS expand aggressively into the Florida market; to date, CVS has opened two stores in Central Florida, nine stores in the Tampa Bay area and eight in South Florida. In addition, CVS currently has two stores under construction in Central Florida, five in the Tampa Bay area and seven in South Florida.

"Our entry into the Florida market has been successful beyond our expectations," said Michael B. Nulman, Senior Legal Counsel for the company. "Customer acceptance of our Florida stores has been tremendous, and sales at these new Florida locations have been better than we had hoped."

CVS plans to continue its steady expansion in Florida, and has targeted the Jacksonville and Miami markets as two areas on which it will focus in the coming months. So far, CVS seems to have benefited greatly from Florida's many winter residents and retirees who have relocated from Northern markets where CVS has long been the pharmacy of choice.

"We have been pleasantly surprised by the extent of the name recognition we enjoy in the Florida market," Nulman added. "A good deal of our traffic seems to be generated by name recognition and customer satisfaction."

CVS hopes to build upon this success in new Western markets, with expansion plans that include Texas and Nevada.

"Texas is a great opportunity for CVS, as is Nevada," Nulman added. "We have plans for a premium site on 'The Strip' in Las Vegas, and have already opened several stores in Texas. We look forward to solid penetration of both markets."

One market that CVS already has penetrated is the Internet.  Since its acquisition in 1999 of Soma.com (the first company in the nation to launch an Internet pharmacy site), CVS has greatly expanded its presence on the Internet with its "virtual pharmacy" Web site. CVS.com not only provides easy access to a complete online pharmacy, as well as more traditional drugstore items, to 55 million current CVS customers, it also gives CVS a platform to reach new customers in new markets and expand CVS as a national pharmacy brand.

Wherever CVS plans to expand next, Holland & Knight is well positioned to help take them there. With over 1,600 attorneys in 25 offices nationwide, Holland & Knight provides a national platform for the delivery of exceptional legal services in the nation's major markets. Using our technological resources and a "team approach" to assisting clients, Holland & Knight provides clients with comprehensive service in an effective and efficient manner. If your company is planning a move, you can count on Holland & Knight to drive the moving van.

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