On the heels of the ever-expanding health services of Wal-Mart (NYSE: WMT), CVS (NYSE: CVS) and Walgreens (NYSE: WAG), big box giant Target (NYSE: TGT) is today opening more of its clinic locations, expanding more of its services to entice more consumers to stores.
The eight clinic locations are in Chicago and the Palm Beach, Fla., area. The Target Clinic locations offer treatment for minor illnesses and injuries, vaccinations, and select screenings.
The targeted move is a part of a larger push into new consumer services, and the company is staying strongly on the offensive. Just a few weeks ago, Target announced plans to bolster their technology operations business via tech support and used video game trade-ins. While it’s staying competitive against Wal-Mart gadget sales, it’s clearly targeting Best Buy (NYSE: BBY) in this latest push.
The new Target Mobile, in partnership with electronics giant RadioShack (NYSE: RSH), will incorporate mobile phone centers into roughly half of its 1,743 stores by the end of this year, with a full rollout by next summer. It’s also starting a used video games program, though unlike GameStop (NYSE: GME), Target will allow video game trade-ins over their website in addition to stores, smartly borrowing the plan from Amazon.com Inc. (NASDAQ: AMZN)’s used-game program.
Its health services push is just another angle in this multifaceted strategic game plan. There are 21 Target Clinic locations currently in Minnesota and Maryland, and the addition will bring that number to 36. If it sees the success that other stores have, it’s likely to expand. And it’s a sure bet the stores will see a new financial revenue stream from this.
Wal-Mart has had huge success with its $4 prescription generics and other low-cost medications. Just recently the superstore announced it was joining the CVS and Walgreens bandwagon with discounted flu shots at more than 4,100 select Wal-Mart and Sam’s Club locations nationwide. While CVS and Walgreen have theirs priced at around $30, Wal-Mart flu shots are $24.
At Target, clinicians will administer an assortment of vaccines including flu, Meningitis, and Hepatitis A and B. Its vaccine prices are – coincidently, of course – $24, though college students receive a 15% discount with their school ID. Take that, Wal-Mart.
TGT is up +8.66% year-to-date against the Dow and S&P 500, and just +3% for the week. But with a very good analyst outlook for the rest of their fiscal year, the company knows that upping their offensive game will certainly put their competition on the defensive. Or, at the very least, keep helping the bottom line.
As of this writing, Burke Speaker did not own a position in any of the stocks named here.
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