CVS Shifts Focus to Medtail
CVS, the well-known retail pharmacy chain, is shifting its focus away from retail and more towards the emerging trend of "Medtail." This shift is not surprising given that CVS has always been at the forefront of providing healthcare services. However, it is interesting to see how the retail giant is adapting to changing consumer needs and expanding its services beyond traditional pharmacy services.
So what is Medtail, and why is it becoming such an important trend? Medtail is a term used to describe healthcare services located in a retail setting. This includes everything from vision or dental offices to specialty wellness services, such as cosmetic and medical spas, occupational and physical therapy, skincare, etc.
The rise of Medtail is a direct response to consumers' increasing demand for more convenient and accessible health and wellness services. With the aging Baby Boomer population and increased focus on health, medical services have moved into retail spaces once occupied by apparel and accessory tenants. This new retail sector has become a great addition to the retail tenant mix, providing creative ways for landlords to fill vacancies and generate foot traffic.
CVS has recognized the potential of the Medtail trend and has been quick to respond to the changing needs of its customers. In 2019, the company launched HealthHUBs, which are dedicated spaces in their stores offering a wide range of healthcare services, including counseling, wellness programs, and even lab tests.
The company's move towards Medtail has been motivated by the need to provide customers with greater access to healthcare services in a convenient and accessible manner. CVS is expanding to provide a more comprehensive suite of healthcare services that go beyond traditional pharmacy services. By doing so, the company is catering to the evolving needs of the modern consumer, who is looking for more personalized healthcare solutions.
However, landlords need to be aware that Medtail tenants have different needs than typical retail tenants. Medtail tenants require specialized spaces that are equipped with the necessary equipment and infrastructure to provide healthcare services. Landlords will need to invest in the necessary infrastructure to accommodate these tenants, which could be a significant expense. Additionally, Medtail tenants may require longer leases and more extensive buildouts, which could make them less attractive to some landlords.
While building Medtail facilities will be costly, the business model is still more efficient than anything we have today. It's no secret that housing all medical services under one roof in a hospital can be a logistical nightmare. Not only do the processes for routine checkups differ from those required for more complex procedures, but the supply chains, operations, and buildouts for these services are also vastly different. Medtail, on the other hand, allows for healthcare services to be conveniently located in a retail setting, with each service occupying its own dedicated space. This model makes sense because it allows for a more streamlined and efficient delivery of healthcare services, with patients able to access the specific services they need without being subjected to the inconvenience and confusion of a hospital environment. Additionally, it allows for more specialized and personalized care, as healthcare providers can focus on their specific area of expertise without being bogged down by other services that are not relevant to their specialty.
The rise of Medtail is an exciting trend that is changing the face of the retail industry. The shift towards Medtail is a natural response to changing consumer needs and demands, and companies like CVS are leading the way in providing innovative healthcare solutions. While there are challenges associated with accommodating Medtail tenants, the potential benefits of increased foot traffic and revenue generation make it an attractive proposition for landlords. As the trend continues to grow, it will be interesting to see how the retail industry adapts and evolves to meet the changing needs of the modern consumer.