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CVS To Revamp Gold Emblem, Launch Total Home

December 16, 2012
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CVS will redefine its Gold Emblem consumable brand in 2013, the company revealed during its analyst day conference last week.

The brand has been rebuilt to provide improved taste appeal and a new contemporary packaging design. All 260 SKUs will get updated packaging and the quality will be improved in 25 percent of those SKUs based on taste and quality test assessments. The brand will be relaunched in stores in January, just in time for the Super Bowl.

CVS also shared that the retailer’s new Total Home brand will consolidate many different home brands covering a broad range of home products. Formal launch will begin in May of next year, while some products will be seen in stores before then.

CVS said private labels represent 17 percent of its front store sales and 26 percent of its front store growth over the past four years. The retailer said private labels had been a big margin driver as their margin is, on average, twice the size of the retailer’s national brand margin.

CVS’s leading private label category is health care, with a 35 percent share.

“We have an aggressive game plan for growing our store brands across the store, with a goal of moving from the current 17 percent penetration towards a goal of well over 20 percent,” the retailer said during its analyst day conference. “We are building our open organization capability to deliver upon this goal. We are defining our white space and the plans to fill that white space, focusing on our existing brands as well as developing new differentiated brands.”

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