In today’s rapidly evolving healthcare landscape, CVS Health is at the forefront of innovation, bridging the gap between traditional healthcare and modern consumer needs. With over 7,500 stores nationwide, the retailer has become a pivotal player in not just retail but in how millions of Americans manage their health and wellness. As the healthcare industry continues to integrate more deeply with retail, understanding the strategies and vision that drive this integration is crucial for both emerging brands and established companies looking to make an impact.
In this fireside chat, ECRM & RangeMe SVP of Retail Wayne Bennett speaks with Zachary Dennett, CVS Health’s recently-appointed VP of Merchandising for Consumer Health Care, who shares valuable advice for emerging brands looking to break into the retail space. He takes a deep dive into how CVS’s omnichannel approach, operational excellence, and commitment to innovation are driving its success, and how emerging brands play a key role in serving CVS customers.
RangeMe: Could you tell us a bit about yourself, what you do at CVS now in your new role, and maybe a little bit about your background?
Dennett: Sure. I’m at CVS Health in a role where I have the privilege of leading our Health and Wellness business, as well as our supplemental benefits business. Before that, at CVS, I was involved in our omnichannel business and the loyalty program, ExtraCare and ExtraCare Plus. Prior to CVS, I’ve had a mix of experience in both big companies and startups in retail, including stints at Jet.com and Joker, which was an ultra-rapid delivery company.
RangeMe: Can you explain to us what the CVS ACE strategy is? I know ACE stands for Authority, Convenience, and Engagement, but could you break that down a little for us?
Dennett: The ACE strategy is central to what we do at CVS Health. CVS is, at its core, a healthcare company, and across all parts of CVS, we’re focused on helping people navigate their healthcare and personal health needs. Within our front store, we align ourselves with the ACE strategy, which stands for Health and Wellness Authority, Convenience, and Engagement.
When we talk about Authority, we’re thinking about the right assortment of products, the appropriate pricing, store formats, and education to help customers along their health journey. Convenience is something CVS essentially invented decades ago, and we’ve been continuously reinventing it ever since. We strive to make shopping easier both in-store and online and ensure that the intersection of these experiences is seamless. Engagement is about how we interact with customers, whether through our ExtraCare programs or through broader initiatives that encourage them to engage with our ecosystem in ways that support their health.
RangeMe: That’s a great framework, Zach. Regarding CVS’s healthcare authority, can you give us an example of a situation or action that CVS has taken, perhaps with a partner, to really showcase this authority you mentioned?
Dennett: In many ways, everything we do at CVS is about reinforcing our authority in health and wellness. But a key aspect where this authority really comes into play is in our assortment strategy. When you walk into a CVS store, every product you see on the shelf has been carefully selected with a view toward this authoritative framework. We ensure that all products in our stores support the goal of driving health and wellness.
This approach trickles down to how we market our products, what we choose to highlight in our advertising, and how we engage with customers. Everything is aligned with this idea of driving health and wellness authority.
RangeMe: Many of our suppliers at ECRM and RangeMe are emerging, younger companies looking to establish a foothold in retail. How can these emerging brands play a role at CVS, and what should they consider in terms of the scope, requirements, and effort needed to succeed within the CVS store environment?
Dennett: This is a topic I’m particularly passionate about. When we talk about emerging brands, we’re referring to either brand-new companies or startups, as well as big companies that are launching new brands. This is what gets our merchants excited—finding new items that solve a unique customer pain point. We’re not interested in just adding another flavor of an existing product. We want to discover truly new items that offer something different.
CVS is a natural fit for anyone playing in the health and wellness space because we offer two things that are crucial for startups: traffic and trust. We have 7,500 stores with a huge number of people engaging with them, and our brand is associated with trust. When new items appear in a CVS store, they benefit from the traffic our stores generate and the implicit endorsement of CVS supporting their brand. That’s a significant advantage for a startup.
Emerging brands that succeed at CVS often engage with us early. They work with us to understand what our merchants are looking for and where there might be overlap. We partner closely with them to drive that success. At CVS, we’re also very aware of the unique challenges that startups face, and we tailor our interactions to meet those needs. We have different structures for launching products from startups versus those from big CPGs.
RangeMe: Are there one or two must-haves that an emerging brand needs to succeed within CVS, considering the size and scope of doing business in such a large environment?
Dennett: Absolutely. First and foremost, CVS does not compromise on compliance or regulation. So, all the must-haves in terms of legal and regulatory requirements need to be fully addressed—no shortcuts there. Beyond that, a brand needs to be solving a customer need. If a brand can anticipate and meet a customer need better than existing brands, it has a place at CVS.
RangeMe: CVS has multiple store formats, and ensuring operational excellence across all of them could be a significant challenge. How do you think like an operator, and how should emerging brands think like operators to simplify retail activation while aligning with CVS’s goals of profit, margin, and simplicity?
Dennett: Let me start with a story to illustrate. I was in a CVS store the other day, and a customer approached me asking if we sell Advil. Now, this is CVS—we definitely sell Advil. What was interesting was that I was standing right next to the Advil when the customer asked me this question. Without moving my feet, I was able to point to it and say, “It’s right here.”
This experience highlighted something important: when customers walk into a store, they aren’t necessarily reading signs or layouts—they’re laser-focused on finding their product. This pushes us to think even harder about how to make the in-store experience as simple as possible for customers. We scrutinize every single word on every sign in the store, asking ourselves if we can say it with fewer words, say it more clearly, and ensure it’s truly helping the customer navigate the store.
Within the shelf space, there’s a complex mix of science and art that goes into determining the customer decision tree and how we place products on the shelves. The goal is always to make the experience as convenient and straightforward as possible.
As for formats, we’re constantly experimenting with new ones. As you travel around the country, you’ll see some of our exciting new store formats that push the boundaries of what the inside of a CVS store looks like to enable the best shopping experience. For emerging brands, it’s crucial to understand how little time you get from a customer walking through the store. You’re not going to have customers reading every footnote on your packaging. You need to communicate your message quickly and effectively, almost like a billboard.
And to build on that, the message needs to be simple. We need to think about what the one message is that we’re trying to convey, rather than trying to communicate 12 different things. It needs to be clear and concise.
RangeMe: Can you share your thoughts on the digital efforts around e-commerce, particularly from a consumer healthcare point of view? How do you see emerging brands leveraging these channels within CVS Health?
Dennett: It’s funny because we often talk about e-commerce and in-store as if they’re separate entities, but the reality is that there are no longer any “in-store-only” or “digital-only” shoppers in America. Customers today are omni-channel, and we spend a lot of time at CVS thinking about how to merge the digital and physical experiences into one cohesive approach.
CVS has a lot of digitally engaged customers—around 60 million unique customers. But what’s particularly surprising is how much digital research is done before customers even step into the store. Our digital sales are significant, but the number of digitally influenced in-store sales is even more substantial. So, even if a brand is primarily focused on in-store sales, they need to be thinking about their online presence because that’s where customers start their journey.
Customers engage with digital channels to research products, understand what’s available, read reviews, and find out which stores stock the items they want. The implication for emerging brands is clear: even if your main focus is on being on the physical shelf, you have to ensure that you’re putting just as much effort into the digital shelf.
On the digital side, customers are generally in more of a research mode. This means you need rich, informative content about your products available online. A product page with just a title and price is not enough. Brands should focus on ensuring their online presence is robust, including detailed descriptions, customer reviews, and images or videos demonstrating the product. This is especially true in the healthcare space, where customers often have specific needs or concerns that they want addressed before making a purchase.
RangeMe: Could you elaborate on how emerging brands can leverage this concept of the total shelf, particularly with CVS’s personalization efforts and retail media network?
Dennett: The concept of the total shelf is all about realizing that the customer’s interaction with your brand doesn’t happen solely in the store aisle. They’re encountering your brand online, in apps, through email, and more. This broader view of the shelf means that brands need to think about how their presence is consistent across all these touchpoints.
CVS has invested heavily in personalization through our loyalty program, ExtraCare, and our retail media network, CMX. ExtraCare is about more than just giving customers discounts; it’s about delivering personalized experiences and offers that resonate with them. Through ExtraCare, we gather a lot of data on what customers are buying, and we use that data to offer them the most relevant deals. This personalization leads to better customer engagement and higher satisfaction.
CMX, on the other hand, allows brands to tap into CVS’s vast reach to drive awareness and engagement. It’s a powerful tool for emerging brands looking to scale quickly. Through CMX, brands can deliver targeted ads and promotions to specific customer segments, leveraging our data and insights to maximize impact.
For an emerging brand, this means that you should be thinking about how to make the most of these tools. Use CMX to create targeted, relevant ads that reach the right customers at the right time. Leverage ExtraCare to build loyalty and keep customers coming back. The more you can integrate these tools into your overall strategy, the more successful you’ll be.
RangeMe: CVS is often seen as the front door of healthcare. How can emerging brands align themselves with this vision and truly connect with consumers through CVS?
Dennett: The idea of CVS being the front door of healthcare is something we take very seriously. We know that for many customers, we’re their first point of contact with the healthcare system. This could be someone coming in to pick up a prescription, asking the pharmacist for advice, or purchasing a healthcare product.
This position comes with a lot of responsibility. We need to ensure that the experience we offer reflects our role as a healthcare provider. For emerging brands, this means that if you’re partnering with CVS, you need to be prepared to align with this mission. It’s about understanding that you’re not just selling a product; you’re part of a larger ecosystem that’s focused on improving the health and wellness of our customers.
Brands that align with this mission will naturally fit into what we’re doing at CVS. This might mean offering products that solve specific health challenges, providing educational content, or simply being transparent about what your product does and how it can help. The more you can align with our mission, the better your chances of success at CVS.
RangeMe: When vendors are pitching to you, do you prefer PowerPoint presentations, or is there another format that you find more effective?
Dennett: I’m a big believer in smart brevity. It doesn’t matter if it’s a PowerPoint presentation, a Word document, or even handwritten notes—what matters is clarity and conciseness. I appreciate it when vendors can get to the point quickly and clearly. We’re looking to have meaningful discussions, and the best way to do that is by communicating your message in a straightforward, effective way. So, whether it’s a PowerPoint or something else, the key is to be clear, concise, and focused on what’s most important.
RangeMe: Before we close, I wanted to touch on our partnership between RangeMe, RangeMe and CVS. How has ECRM and RangeMe helped your team over the years?
Dennett: ECRM and RangeMe have been invaluable partners to CVS over the years. Your platforms have made it easier for us to discover exciting new products that align with our goals. Your team has built a great reputation with our merchants, and we truly appreciate the work you do in supporting our efforts to deliver the best products to our customers.
RangeMe: That means a lot to us, Zach. We’re proud to be a part of CVS’s journey and look forward to continuing our partnership. Once again, thank you for your time today, and we wish you continued success in your role at CVS Health.
Editor’s Note: CVS Health regularly participates in RangeMe Immediate Opportunities, and brands can meet with CVS Health buyers at ECRM’s category-specific Sessions.