Monday, July 13, 2015

CVS, No Fliers



Many readers didn't get CVS fliers in this week's Sunday paper. Here are my thoughts on that. This is probably a test to see if sales drop when there is no flier. It's expensive to print and distribute a 12-20 page flier to hundreds of thousands of homes. If it increases sales over the cost of printing and distribution, then it's worth it. If sales only drop a small amount this week, then CVS may decide that fliers don't pay for themselves. It's important that everyone make their feelings known. If you didn't get a flier, email CVS and complain. If you are upset, let them know you won't be shopping at CVS this week.  Ultimately, this will be a financial decision on CVS's part -- not necessarily driven by customer comments. Instead, it will be driven by the bottom line.

Also realize that the fliers are planned literally months in advance and are printed weeks in advance. Any input right now won't make a wit's difference for next week. If there is a flier coming next week, then that was decided long ago, not in response to any complaints made in the past 2 days. If this is a test, then sales will be compared this week (no flier) to next week (flier + sales). That will be the determining factor. Don't shop this week, then hit it hard next week.

I sometimes wonder if the chains care if dedicated couponers come to their stores or not. Couponers have a reputation for clearing shelves on the first day of sales, leaving nothing for non-couponers. (My simple answer to that is STOCK MORE PRODUCT - PUT MORE OUT EVERY DAY!) For chains like CVS, they may not care much if the serious couponers stay away. We are a minority. What every business looks at is ROI (return on investment). They invest a lot of money in the printing & distribution of fliers, and they are testing to see if that investment is worth it. Far more people never touch the flier than actually look at it. So it could go either way.


It reminds me a little of the JCPenney fiasco a few years ago when they dropped sales and coupons for "everyday low prices". JCPenney just about went bankrupt. People stayed away in droves. A new CEO brought back coupons and sales, and is slowly turning it around. Businesses are all about the bottom line. The same with CVS. If the flier drives enough sales, it will stay. If not, it will go. We make our opinion known with our dollars. Don't shop at CVS this week. Shop a lot next week.              

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