& WENDY LIEBMANN // WSL

JUDY SANSONE // CVS/HEALTH

PATH TO PURCHASE SUMMIT | March 17, 2015

How Shopper Insights are Transforming U.S.

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Understanding and their shopping life is the path to successfully your future retail.

WSL mission

SM

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1 Health & Wellbeing: Big Opportunity (for All) 2 Why CVS Saw the Opportunity

3 How CVS Executed Against It

4 31/2 Things to Consider for the

Future

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For everyone. well, almost everyone

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HEALTH CARE ISSUES CONTINUE TO SKYROCKET

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AFFORDABLE CARE ACT KICKS IN

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SHOPPERS ADOPT HEALTHIER HABITS

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NEW TECHNOLOGY MAKES HEALTHY LIVING ACCESSIBLE

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COMPANIES EXPAND THEIR WELLNESS PORTFOLIOS

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RETAILERS INNOVATE THEIR STORE EXPERIENCES

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RETAILERS EXPAND CLINICS

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HOTELS TO HOSPITALS, ALL INDUSTRIES PARTICIPATE

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FROM FASHION TO BEAUTY, ALL CATEGORIES JUMP IN

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HAS ALREADY

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WHAT ARE THE IMPLICATIONS? New

Choices

New Treatments

New Threats

New Opportunities

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HOLISTIC VIEW BODY, MIND & SPIRIT

Laughing and emotional

well-being. Age 49

Balancing physical and

mental health.

Age 34

Overall maintenance of mental and

physical incorporating

exercise, healthy eating and living.

Age 51

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MENTAL HEALTH

Feeling mentally balanced

76%

Feeling energized 74% Feeling positive 71%

% Healthy means mentally balanced

+16 ppts. from 2011

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THE BASICS

Able to move easily

71%

Being rested (enough sleep)

70%

Being at the right weight

68%

THE LOOK OF HEALTH Having glowing/soft skin 37% Looking good in clothes 34%

Having shiny hair 32%

Having white teeth 31%

Having bright eyes 31%

Having strong nails 27%

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% Too much stress

#1 OBSTACLE TO GOOD HEALTH?

Smokers #1 Obstacle

is Smoking

58%

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OTHER OBSTACLES

37% Lack of sleep

36% Being

overweight

32% Too much

sugar, salts, fats

32% Too many processed

foods

25% Not having

time to exercise

23% Cant afford

healthier choices

19% Health

conditions/illness

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% Are confident they know how to live a healthy life

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HEALTHY HAS A WIDE REACH

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MAJORITY TRUST A LONG LIST OF ADVISORS Top 10 Trusted Advisors For Health Information

(Base: Users/Familiar with Service)

75% 73% 69% 69% 62% 62% 61% 60% 57% 53%

Physician

(General)

Physician (Specialist

)

Pharmacist

Nurse Parents/ Grandparen

ts

Nutritionist Physical Therapist

Health Websites

My Children

Friends

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45% 43% 41% 39% 38% 37% 37% 35% 35% 30%

3/10 - 4/10 SHOPPERS TRUST MEDIA (NEW AND OLD)

Trusted Sources For Health Information (Base: Users/Familiar with Service)

Govt Websites

Fitness Apps

Online Reviews/Ratings

Newspaper/

Magazine Articles

Ideas/ Recipes on Pinterest

Brand Websites

Health Forums/

Chat Rooms

Blogs Retailer Websites

Posts on Social Networks

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APPS PLAY A ROLE TOO

23% 22% 17% 17% 11% 11% 8%

Use of Health Related Apps (Base: Users/Familiar with Service)

Fitness Performan

ce Tracking

Apps

Health Informatio

n/ Advice Apps

Fitness Informatio

n Apps

Dieting & Nutrition

Apps

Retailer Apps

Brand Apps

Sleep Monitoring

Apps

31%

27%

26%

26%

17%

15%

14%

Millennials

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RETAILERS! Earn my trust. Retailers Shoppers Trust for Healthy Choices

(Base: Channel/Store Shoppers)

Specialty Vitamins/Supplements Stores

75%

Specialty Food 74%

Independent Drug Stores 73%

Warehouse Clubs 71%

Chain Drug Stores 64 - 69%

Specialty Beauty 60%

Amazon 59%

Mass Merchandisers

49 - 56%

Dollar Stores 45%

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% Increase healthy choices

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% Identify healthy choices

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34% Flag healthier

choices

31% Create a

loyalty program to encourage

healthy choices 26% Showcase the

source for fresh foods

25% Provide

information to about healthy

choices

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48% 36%

50%

RETAILERS! Earn my trust. I Read Labels to Make Healthier Choices

(Base: Total Respondents)

%

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AT RETAIL

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SHOP RITE Focus On Healthier Choices

FRESH JUICE & SMOOTHIES WELLNESS CENTER DIETICIAN SELECTIONS @ THE PHARMACY

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RALPHS & ST. JOSEPH HOAG HEALTH Shop with your Doc

ST. JOSEPH HOAG HEALTH & RALPHS PARTNERSHIP

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STANLEYS PHARMACY Old and New World Under One Roof

TEA BAR FOR HANGOVER CURES, DETOXING PHARMACY, AND A MIX OF NATIONAL, NICHE, AND NATURAL BRANDS

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SELFRIDGES THE BEAUTY PROJECT Wellness Reaches Whole Store

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CAPITAL BLUE Encourages Prevention

JUDY SANSONE