In the United States, pharmacies play a critical role in the healthcare industry. According to our healthcare dataset, there are 118,473 pharmacies in the U.S.A. offering a wide range of services.

CVS pharmacy, one of the largest pharmacy chains in the United States, operates thousands of locations across the country, providing essential health services, prescription drugs, and retail products.

In an industry increasingly shaped by competition, digital transformation, and shifting consumer expectations, understanding how CVS Pharmacies are performing is critical for stakeholders ranging from investors to urban planners.

This article shows how generative AI can provide actionable insights into CVS Pharmacy's performance by analyzing traffic patterns, customer ratings, and reviews.

Number of CVS Pharmacies in the U.S.A

As of recent data, there are over 10,100 CVS pharmacies across the USA—these pharmacies are mostly found in the Eastern United States, specifically in the Northeast and Southeast regions. California, Texas, and Florida have the highest populations of CVS pharmacies in the U.S.A. There are 1,195 CVS pharmacies in the USA, 889 in Texas, and 838 in Florida. On the contrary, Vermont, Maine, Delaware, Alaska, and Hawaii have the lowest populations of CVS pharmacies.

Analyzing Traffic Data of CVS Pharmacies in the U.S.A

Traffic data plays a crucial role in evaluating the performance of CVS Pharmacies across the United States. By understanding foot traffic patterns, businesses can assess location efficiency, identify high-performing areas, and uncover opportunities for improvement. The following analysis of CVS traffic data highlights key trends in visitation levels.

Based on xMap healthcare dataset, the performance of CVS locations can be categorized as follows:

• Highly Visited Locations: There are 632 CVS locations with high traffic (customer visitation). These stores, often located in densely populated urban areas or near key transit hubs, consistently attract the highest foot traffic.
• Above Average Visitation: A significant portion of CVS locations falls within this category. There are 4,402 locations with above-average visitation, reflecting strong customer demand in suburban and moderately populated urban settings.
• Average Visitation: 65 locations see moderate foot traffic, which may result from competition, less accessible locations, or limited nearby population density.
• No Recorded Traffic Data: 5,026 locations lack traffic data, presenting an opportunity to leverage AI for improved tracking and analysis.

For detailed traffic data of CVS pharmacies in the United States, check out the USA healthcare dataset.

Challenges in Average and Low-Data Locations

Locations with average visitation levels or limited recorded traffic data face several obstacles that can hinder their performance. Understanding these challenges is critical for CVS to enhance the effectiveness of its operations and meet customer needs more efficiently.

1. Limited Visibility or Accessibility

• Lack of Prominent Signage: Stores in less trafficked areas often suffer from insufficient signage, making them harder for customers to spot. This is particularly detrimental in areas where CVS competes with nearby retail pharmacies.
• Poor Accessibility: Locations without convenient parking, clear pedestrian access, or proximity to public transportation may struggle to attract a steady flow of visitors. Customers are likely to opt for more accessible options, even if they are farther away.
• Ineffective Placement: Stores situated away from main roads or commercial areas may not capitalize on incidental foot traffic, reducing overall customer flow.

2. Proximity to Competitors Offering Similar Services

• Market Saturation: In areas where competitors such as Walgreens or Rite Aid are present, CVS stores may find it difficult to differentiate themselves, particularly if competitors offer similar services like prescription delivery or loyalty programs.
• Competitive Pricing: Pharmacies with average visitation may lose customers to nearby stores offering more competitive pricing or promotions.
• Overlapping Customer Base: In densely populated areas, multiple pharmacy options may lead to the division of potential customers, creating a market share struggle.

3. Reduced Population Density

• Rural Locations: In rural or sparsely populated areas, the customer base may be too small to generate consistent traffic. These stores rely heavily on repeat visits from the same community, which can limit growth potential.
• Changing Demographics: Population shifts, such as urban migration or aging communities, may further reduce the customer base in these locations over time.
• Limited Local Demand: In areas with low population density, the demand for non-prescription items (e.g., cosmetics, over-the-counter medications) may be minimal, further limiting revenue streams.

Ratings of CVS Pharmacies in the U.S.A

Customer satisfaction ratings provide critical insight into the performance of CVS pharmacies across the United States. Ratings reflect customers’ overall experiences, encompassing everything from product availability and staff helpfulness to wait times and accessibility. Using the data provided, we can observe key trends that shed light on areas of strength and opportunities for improvement.

• High Ratings (4 to 5 stars):
  • A significant proportion of CVS stores received ratings in the range of 4 and above. For example, 469 stores achieved a perfect 5-star rating, while 558 stores scored 4 stars.
  • Mid-4 ratings (4.1 to 4.9) show strong customer satisfaction, indicating successful implementation of store policies, customer service excellence, and product availability.
• Moderate Ratings (3 to 3.9 stars):
  • Ratings in this range account for a large segment of stores, with values such as 3.8 (565 stores), 3.7 (493 stores), and 3.5 (483 stores) being the most frequent.
  • This segment suggests an average customer experience, with mixed reviews on service quality, product offerings, or other operational factors.
• Low Ratings (1 to 2.9 stars):
  • A smaller but notable percentage of stores fell into the lower ratings, including 86 stores rated at 1 star and 160 stores at 2.5 stars.
  • Stores with ratings below 3 often reflect dissatisfaction due to factors such as long wait times, unavailability of popular products, or negative customer service interactions.

Review Data of CVS Pharmacies in the U.S.A

There are no CVS pharmacies with up to 1,000 reviews compared to other pharmacy brands that receive a high volume of reviews. The highest volume of reviews for CVS pharmacies in the U.S.A. falls between 350-200. These locations are found in Colorado, Texas, Nevada, New Jersey, and Georgia. Geospatial analytics tools like Studio can help businesses visualize and analyze performance data to extract insights for data-driven decision-making.

Leveraging Generative AI for Market Insights

Generative AI is revolutionizing how businesses assess and improve their performance. Here are three key ways it benefits CVS and other pharmacy brands:

1. Preventing Business Mistakes in Site Selection
2. Generative AI enables CVS to analyze demographics, traffic patterns, and competitor data before opening a new location. This minimizes the risk of poor site selection, which can lead to low foot traffic and revenue.
3. Enhancing Competitor Analysis
4. By studying competitors in nearby locations, generative AI identifies opportunities for CVS to differentiate its offerings, whether through exclusive products, services, or pricing strategies.
5. Optimizing Resource Allocation
6. Generative AI tools like Polygon AI help CVS allocate resources efficiently by predicting high-demand periods, enabling better staffing and inventory management.

Conclusion

As the retail pharmacy industry continues to evolve, data-driven decision-making will be critical for sustained success. Generative AI offers businesses and their competitors the tools to stay ahead, providing real-time insights that enhance customer satisfaction, operational efficiency, and market share.

By leveraging these insights, CVS and other pharmacy brands can refine their operations, expand strategically, and continue to serve as a leader in the pharmacy industry.

Contact xMap to learn more about how our datasets across countries and industries. For more information contact sales@xmap.ai