Aug 25, 2011
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CVS taps Macy's exec to oversee drugstores

Aug 25, 2011

August 25 - CVS Caremark Corp named a Macy's Inc executive to head its drugstores division, ending a months-long search after a judge blocked a previous choice.

CVS Pharmacy interior (beauty area)

CVS, the second-largest U.S. drugstore chain operator, said Mark Cosby, 52, would become president of its CVS/pharmacy unit on Oct. 1. Cosby would oversee CVS' retail operations, including its distribution centers, e-commerce and pharmacy operations. CVS Chief Executive Larry Merlo had been overseeing the unit on an interim basis.

Cosby most recently was department store operator Macy's president of stores.

Last year, CVS hired Hank Mullany, who served as president of Wal-Mart Stores Inc's northern U.S. division until November. The discount retailer then sued CVS, saying the move would violate a noncompete agreement. A Delaware Chancery Court judge blocked Mullany in December from taking the job.

CVS, which operates nearly 7,300 drugstores, had $14.8 billion in retail sales during its most recent quarter, or 55.6 percent of the CVS Caremark's total revenue. The rest came primarily from its pharmacy benefits business.

CVS shares were unchanged at $32.42 in afternoon trading.

(Reporting by Phil Wahba; Editing by Steve Orlofsky)

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