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CVS Health Launches Health, Beauty Makeover for Drugstores

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This June 20, 2011 photo shows signage at a CVS store in Philadelphia. CVS drugstores that quit tobacco sales last year are now getting health and beauty makeovers to attract customers who want more than a prescription refill, the nation’s second-largest drugstore chain said Wednesday, June 17, 2015. (AP Photo/Matt Rourke, File)

This June 20, 2011 photo shows signage at a CVS store in Philadelphia. CVS drugstores that quit tobacco sales last year are now getting health and beauty makeovers to attract customers who want more than a prescription refill, the nation’s second-largest drugstore chain said Wednesday, June 17, 2015. (AP Photo/Matt Rourke, File)

TOM MURPHY, AP Business Writer

CVS drugstores that quit tobacco sales last year are now getting health and beauty makeovers and a shot of ethnic diversity in some cases to attract customers who want more than a prescription refill.

The nation’s second-largest drugstore chain said Wednesday that it is adding fresh foods, healthy snacks and expanded beauty options to many of its locations. It also is testing a new format designed for stores that serve Hispanic populations.

CVS Health Corp. executives say these changes reflect customer demand. They also could help perk up store sales outside the pharmacy area that have slumped since the company phased out tobacco last September.

The push from CVS reflects similar expansions by rivals Walgreens Boots Alliance Inc. and Rite Aid Corp. into selling healthier foods and more beauty items. Drugstores have been focusing more for a few years now on customizing their stores to what shoppers in a specific market want instead of simply building new locations.

They’ve also added clinics and expanded their health care services in part to get more business from aging baby boomers and people who are gaining insurance coverage through the federal health care overhaul. And drugstores are offering a wider array of products outside the pharmacy to satisfy customers who want to make fewer stops when they go shopping.

“Health and beauty, in particular, is very high profit margin, and CVS has always been a leader there,” said Jeff Jonas, a portfolio manager who follows the industry for Gabelli Funds.

CVS Health, which recently announced a partnership with Target Corp. to expand its health care business, runs about 7,800 drugstores nationwide

The Woonsocket, Rhode Island-based chain said Wednesday that it is adding fresh and refrigerated foods to about 500 of its stores and bulking up on healthier snacks chainwide. Bagged candy, which occupies the first aisle in many stores, is being moved back and replaced with nuts, trail mixes and granola, among other items.

“Consumers used to eat three meals a day, and now they tend to be snacking through the day, and they’re really looking for a convenient location which gives them access to healthier foods,” Executive Vice President Helena Foulkes said.

CVS started adding groceries to some urban stores a few years ago to serve customers who don’t have easy access to a supermarket. The company recently started testing a new wrinkle to that themed concept with a dozen, mostly remodeled stores named CVS/pharmacy y mas in South Florida.

These stores are staffed by bilingual workers and sell brands popular with Hispanic customers as well as products like espresso makers and rice cookers. They also sell an espresso-style coffee called Cafecito in their pharmacies. CVS designed the concept based on insights it gained after buying the small Navarro Discount Pharmacy chain last year.

The company also is adding more beauty products and improving the look of that section in many of its stores.

Foulkes said health and beauty sales have grown 25 percent faster over the last three years than general merchandise and edibles in the front of their stores, or the area outside the pharmacy. Bulking up on beauty caters to women, who make up 80 percent of their store customer base.

“They see beauty as being part of their definition of health,” Foulkes said. “Women talk a lot about feeling good and looking good.”

CVS Health declined to detail how much it is spending on all the changes. The investment is focused on an area of the company’s business that could use a boost.

Revenue from the front end of the company’s established drugstores, or the area outside the pharmacy, has slipped the past couple of quarters. It was down 6 percent in the first quarter but would have risen about 2 percent without the loss of revenue brought in by tobacco.

Retailers don’t make a lot of money off tobacco, but it draws customers who often pick up other items like a can of soda or a snack when they visit.

CVS draws most of its drugstore revenue from its pharmacies. Most of its corporate revenue comes from running one of the nation’s largest pharmacy benefits management businesses, which handles prescription drug plans for employers, insurers and other customers.

Company shares climbed 65 cents to $103.82 Wednesday, slightly outpacing broader trading indexes.

Copyright 2015 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Activism

OPINION: Your Voice and Vote Impact the Quality of Your Health Care

One of the most dangerous developments we’re seeing now? Deep federal cuts are being proposed to Medicaid, the life-saving health insurance program that covers nearly 80 million lower-income individuals nationwide. That is approximately 15 million Californians and about 1 million of the state’s nearly 3 million Black Californians who are at risk of losing their healthcare. 

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Rhonda M. Smith.
Rhonda M. Smith.

By Rhonda M. Smith, Special to California Black Media Partners

Shortly after last year’s election, I hopped into a Lyft and struck up a conversation with the driver. As we talked, the topic inevitably turned to politics. He confidently told me that he didn’t vote — not because he supported Donald Trump, but because he didn’t like Kamala Harris’ résumé. When I asked what exactly he didn’t like, he couldn’t specifically articulate his dislike or point to anything specific. In his words, he “just didn’t like her résumé.”

That moment really hit hard for me. As a Black woman, I’ve lived through enough election cycles to recognize how often uncertainty, misinformation, or political apathy keep people from voting, especially Black voters whose voices are historically left out of the conversation and whose health, economic security, and opportunities are directly impacted by the individual elected to office, and the legislative branches and political parties that push forth their agenda.

That conversation with the Lyft driver reflects a troubling surge in fear-driven politics across our country. We’ve seen White House executive orders gut federal programs meant to help our most vulnerable populations and policies that systematically exclude or harm Black and underserved communities.

One of the most dangerous developments we’re seeing now? Deep federal cuts are being proposed to Medicaid, the life-saving health insurance program that covers nearly 80 million lower-income individuals nationwide. That is approximately 15 million Californians and about 1 million of the state’s nearly 3 million Black Californians who are at risk of losing their healthcare.

Medicaid, called Medi-Cal in California, doesn’t just cover care. It protects individuals and families from medical debt, keeps rural hospitals open, creates jobs, and helps our communities thrive. Simply put; Medicaid is a lifeline for 1 in 5 Black Americans. For many, it’s the only thing standing between them and a medical emergency they can’t afford, especially with the skyrocketing costs of health care. The proposed cuts mean up to 7.2 million Black Americans could lose their healthcare coverage, making it harder for them to receive timely, life-saving care. Cuts to Medicaid would also result in fewer prenatal visits, delayed cancer screenings, unfilled prescriptions, and closures of community clinics. When healthcare is inaccessible or unaffordable, it doesn’t just harm individuals, it weakens entire communities and widens inequities.

The reality is Black Americans already face disproportionately higher rates of poorer health outcomes. Our life expectancy is nearly five years shorter in comparison to White Americans. Black pregnant people are 3.6 times more likely to die during pregnancy or postpartum than their white counterparts.

These policies don’t happen in a vacuum. They are determined by who holds power and who shows up to vote. Showing up amplifies our voices. Taking action and exercising our right to vote is how we express our power.

I urge you to start today. Call your representatives, on both sides of the aisle, and demand they protect Medicaid (Medi-Cal), the Affordable Care Act (Covered CA), and access to food assistance programs, maternal health resources, mental health services, and protect our basic freedoms and human rights. Stay informed, talk to your neighbors and register to vote.

About the Author

Rhonda M. Smith is the Executive Director of the California Black Health Network, a statewide nonprofit dedicated to advancing health equity for all Black Californians.

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Black History

Henry Blair, the Second African American to Obtain a Patent

Being a successful farmer required consistent production. Blair figured out a way to increase his harvest. He did this with two inventions. His first invention was a corn planter. The planter had the same structure as a wheelbarrow, with a box to hold the seed and rakes dragging behind to cover them. This machine allowed farmers to plant their crops more economically.

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A sketch of one of Henry Blair’s inventions, the seed planter. Image courtesy United States Patent and Trademark Office.
A sketch of one of Henry Blair’s inventions, the seed planter. Image courtesy United States Patent and Trademark Office.

By Tamara Shiloh

The debate over whether enslaved African Americans could receive U.S. Government-issued patents was still unfolding when the second African American to hold a patent, Henry Blair, received his first patent in 1834.

The first African American to receive a patent was Thomas Jennings in 1821 for his discovery of a process called dry scouring, also known as dry cleaning.

Blair was born in Glen Ross, Maryland, in 1807. He was an African American farmer who received two patents. Each patent was designed to help increase agricultural productivity.

There is very little information about his life prior to the inventions. It is known that he was a farmer who invented machines to help with planting and harvesting crops. There is no written evidence that he was a slave.

However, it is apparent that he was a businessman.

Being a successful farmer required consistent production. Blair figured out a way to increase his harvest. He did this with two inventions. His first invention was a corn planter. The planter had the same structure as a wheelbarrow, with a box to hold the seed and rakes dragging behind to cover them. This machine allowed farmers to plant their crops more economically.

Blair could not write. As a result of his illiteracy, he signed the patent with an “X”. He received his first patent for the corn planter on Oct. 14, 1834.

Two years later, taking advantage of the boost in the cotton industry, he received his second patent. This time for a cotton planter. This machine worked by splitting the ground with two shovel-like blades that were pulled along by a horse. A wheel-driven cylinder behind the blades placed seeds into the freshly plowed ground. Not only was this another economical and efficient machine. It also helped with controlling weeds and put the seeds in the ground quickly Henry Blair received his second patent on Aug. 31, 1836

During this time, the United States government passed a law that allowed patents to be granted to both free and enslaved men. However, in 1857, this law was contested by a slaveowner. He argued that slaveowners had a right to claim credit for a slave’s inventions. His argument was that since an owner’s slaves were his property, anything that a slave owned was the property of the owner also.

In 1858 the law changed, and patents were no longer given to slaves. However, the law changed again in 1871 after the Civil War. The patent law was revised to permit all American men, regardless of race, the right to patent their inventions.

Blair died in 1860.

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Bo Tefu

Gov. Newsom Highlights Record-Breaking Tourism Revenue, Warns of Economic Threats from Federal Policies

“California dominates as a premier destination for travelers throughout the nation and around the globe,” said Newsom. “With diverse landscapes, top-rate attractions, and welcoming communities, California welcomes millions of visitors every year. We also recognize that our state’s progress is threatened by the economic impacts of this federal administration, and are committed to working to protect jobs and ensure all Californians benefit from a thriving tourism industry.”

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iStock.
iStock.

By Bo Tefu, California Black Media

Last week, Gov. Gavin Newsom, along with the nonprofit organization Visit California, announced that tourism spending in California reached a record $157.3 billion in 2024, reinforcing the state’s status as the top travel destination in the United States.

The Governor made the announcement May 5, referencing Visit California’s 2024 Economic Impact Report, which highlights a 3% increase in tourism revenue over the previous year.

According to the report, California’s tourism sector supported 1.2 million jobs, generated $12.6 billion in state and local tax revenues, and created 24,000 new jobs in 2024.

“California dominates as a premier destination for travelers throughout the nation and around the globe,” said Newsom. “With diverse landscapes, top-rate attractions, and welcoming communities, California welcomes millions of visitors every year. We also recognize that our state’s progress is threatened by the economic impacts of this federal administration, and are committed to working to protect jobs and ensure all Californians benefit from a thriving tourism industry.”

Despite the gains in tourism revenue, Visit California’s revised 2025 forecast points to a 1% decline in total visitation and a 9.2% decrease in international travel. The downturn is attributed to federal economic policy and what officials are calling an impending “Trump Slump,” caused by waning global interest in traveling to the United States.

To offset projected losses, the Governor is encouraging Californians to continue traveling within the state and has launched a new campaign aimed at Canadian travelers.

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