<?xml version="1.0" encoding="UTF-8" standalone="yes"?><oembed><version><![CDATA[1.0]]></version><provider_name><![CDATA[richard2496]]></provider_name><provider_url><![CDATA[https://richard2496.wordpress.com]]></provider_url><author_name><![CDATA[rkochers]]></author_name><author_url><![CDATA[https://richard2496.wordpress.com/author/rkochers/]]></author_url><title><![CDATA[CVS vs Amazon]]></title><type><![CDATA[link]]></type><html><![CDATA[<h2 class="field field-name-field-headline field-type-text field-label-hidden field-wrapper">CVS to Offer Nationwide Next-Day Delivery in Preemptive Shot at Amazon</h2>
<div class="view view-Articles view-id-Articles view-display-id-entity_view_2 view-dom-id-da805386ba4e3e4319bcf38c1015cf40">
<div class="view-content">
<div class="views-row views-row-1 views-row-odd views-row-first views-row-last">
<div class="views-field views-field-nothing">
<div class="photo-combined Business Logistics TCA "><img src="https://i1.wp.com/www.ttnews.com/sites/default/files/cvs-logo-sign.jpg" width="1200" height="667" /><span class="field-name-field-photo-credit">Christopher Lee/Bloomberg News</span></div>
</div>
</div>
</div>
</div>
<div class="field field-name-field-body-text field-type-text-with-summary field-label-hidden field-wrapper">
<p class="TX">CVS Health plans to begin offering next-day delivery of prescriptions and retail merchandise from its nationwide network of more than 9,700 stores, marking a potentially preemptive strike at Amazon as the online giant weighs entry into the pharmacy business.</p>
<p class="TX">CVS CEO Larry Merlo said Nov. 6 that the company would begin offering the service in 2018.</p>
<p class="TX">Stores in Miami, Boston, Philadelphia, Washington, D.C. and San Francisco will offer same-day delivery, he said..</p>
<p class="TX">The move comes as Amazon is said to be considering selling prescription drugs, which would require navigating a complex thicket of regulatory approvals but would represent a significant threat to CVS.</p>
<p class="TX">It also comes as CVS grapples with declining in-store sales as many of the retail products the company sells are contracting.</p>
<p class="TX">The company will also offer free, same-day from all of its locations in Manhattan starting Dec. 4..</p>
<p class="TX">A division that manages prescription drug benefits helped offset a declining in-store performance in the third quarter for the drug-store chain.</p>
<p class="TX">CVS on Nov. 6 reported slightly better-than-expected revenue and profit for the period but stayed tight-lipped its rumored talks to acquire health insurance giant Aetna.</p>
<p class="TX">CVS recorded third-quarter revenue of $46.18 billion, up 3.5%. That narrowly edged S&amp;P Global Market Intelligence expectations of $46.17 billion..</p>
<p class="TX">Hurricanes Harvey, Irma and Maria took a $55 million bite out of the company’s earnings, mostly in the form of payments in insurance deductibles, Merlo said on a conference call. Some 925 CVS locations were closed at some point because of the storms.</p>
<p class="TX">The company’s pharmacy services division, which manages drug benefits as an intermediary between insurers and drug companies, grew into an even bigger part of its business in the third quarter.</p>
<p class="TX">That unit’s sales rose 8.1% to $32.9 billion as prescription volume, mail orders and specialty drugs increased.</p>
<p class="TX">The way CVS reports its results, its pharmacy services division overlaps with its retail segment, whose revenue was down 2.7% to $19.6 billion.</p>
<p class="TX">Sales at CVS stores open at least a year, a metric viewed as a vital gauge of a retailer’s health, declined 3.2%.</p>
<p class="TX">CVS said its same-store sales were hurt by an increase in generic drugs, lower insurance reimbursement rates, an intentional move to cut store discounts and less foot traffic.</p>
<p class="TX">Facing the potential entry of online giant Amazon into the pharmacy business, CVS is said to be considering a massive offer to buy Aetna, which recently abandoned a proposed tie-up with Humana amid regulatory pressure.</p>
<p class="TX">A deal with Aetna would give CVS a hand in most major elements of the health care business, including insurance, pharmacy benefit services, pharmacy sales and even clinical care.</p>
<p class="TX">CVS did not comment on a prospective Aetna accord Nov. 6.</p>
<p class="TX">The company’s net income fell 19.8% to $1.29 billion, edging S&amp;P Global Market Intelligence expectations of $1.28 billion.</p>
<p class="TX">CVS stock increased 0.5% in pre-market trading to $69.60.</p>
</div>
]]></html><thumbnail_url><![CDATA[https://i1.wp.com/www.ttnews.com/sites/default/files/cvs-logo-sign.jpg?fit=440%2C330]]></thumbnail_url><thumbnail_width><![CDATA[440]]></thumbnail_width><thumbnail_height><![CDATA[245]]></thumbnail_height></oembed>