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The Impact of Third Party Distribution Channels

What is third party distribution?

You have seen third party distribution when you’ve walked past the gift card displays at your grocery or pharmacy but may not know it by name. Third party is a common term in the B2B Gift Card Industry. It’s the opportunity to sell gift cards in retail locations that are independent of the brand represented on the gift card. By definition, third party sales refer to the three companies involved when selling to the consumer: the brand on the gift card, the company that sells the gift card, and the company that manages the operational component of the transaction. For most gift cards programs, third party represents their largest sales channel and the greatest opportunity for consumer awareness and marketing. Why’s this? Consumer traffic!

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CVS Health Brand Exceeds Expectations

CVS/pharmacy posted a 10.3% increase in net revenue in the third quarter. As the economy continues to recover and the pharmacy sector continues to grow, positive returns shouldn't be surprising. However, the numbers CVS Health brand is putting up are almost unprecedented. A major reason for the growth came from the acquisition of Omnicare, which continues to prove the innovation of CVS/pharmacy. Omnicare allowed CVS/pharmacy to expand into the niche pharmacy market for senior living and long-term care facilities and provide care to a population who may never go into a retail pharmacy.

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Speedway Acquisition of Hess Ahead of Schedule

It’s been a little over a year since the Speedway acquisition of Hess Retail Network, and executives are excited that the conversion to the Speedway brand is “significantly ahead of schedule”. Nearly 1,000 of the 1,245 Hess locations have been rebranded to Speedway and 240 have been remodeled or are in the process of being remodeled.

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The CVS/pharmacy October eNewsletter is Out!

Top stories from the CVS/pharmacy October eNewsletter!

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While the change of seasons brings us relief from the summer heat, we also start to see an increase in illness. October is the start of flu season, and on average, your employees will lose almost 3 days of work from the flu. Each flu season results in approximately $7 billion in lost productivity.

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Non-Cash Rewards are Key to Long-Term Sales

Imagine offering merchandise or a gift card instead of a standard $10 off incentive to drive sales. Changing your discount structure in such a way may seem crazy but new research from Ifeelgoods may have you thinking differently. The research revealed that, if given a cash-based offer or a non-cash reward, consumers carried more brand equity and purchase intent than when retailers put more cash back in consumers’ pockets. The study revealed that non-cash incentives had diverse positive correlations with consumers including:

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