ANNOUNCEMENT: CVS Sets April 1 as 45% Sell Thru Target Date
In a Tuesday, January 22, 2008, memo from CVS Category Manager, Gary Marcotte, CVS has indicated its intention to improve sell thru efficiency to 45% on all titles by April 1, 2008. Below, please find the distributed memo, outlining the expected sell thru adjustments.
Subject: CVS Magazine Efficiency
Based on the continued low sell thru efficiency at CVS, we will be setting new expectations to set sell thru at a higher level. The most recent sell thru efficiency is 31% overall. Low sell thru is very taxing on our stores and negatively impacts the category financials.
Below are the adjustments each Wholesaler and Publisher must make effective immediately. By making these changes now, we expect to be at the new sell thru standard by April 1, 2008.
Sell thru requirements:
- Mainline planograms – sell thru must increase to 45% on all titles
- Top of Checkout, RX, Beauty Powerwing – Goal is 45%, however, all pockets must maintain a minimum of 2 copies per – this may lower the sell thru but we do not want empty pockets at any of these locations.
CVS will monitor sell thru efficiency every quarter – titles falling below 45% will be considered for removal from the CVS Authorized List.
Thank You,
Gary Marcotte
CVS Category Manager