Dive Brief:

• Non-pharmacy Q1 sales at CVS were down 2.4% for the quarter, while pharmacy sales increased 5.1%.

• Overall Q1 profits increased 19% to $1.13 billion, and revenue increased 6.3% to $32.69 billion.

• The deep discounts its competitors are using to drive sales are not sustainable, the company says, so it is keeping the best deals for participants in its own loyalty program.

Dive Insight:

CVS is playing the long game, saving discounts for its own card-carrying loyalty program members rather than enticing all comers with low prices, as many of its competitors are doing. With its phase-out of tobacco sales by October and its increasing investments in becoming more of a health-care provider, CVS is banking that discounts are not the key, ultimately, to getting people through their doors.