CVS Caremark Corp. (CVS) appointed its two highest-ranking retail executives to manage its retail business as the company resumes its search for a new president of the division.
The company, the second biggest U.S. drugstore chain behind Walgreen Co. (WAG), has been pressured by consumers' reluctance to spend, but in the third quarter saw improvement in its retail business, though earnings overall declined 21% on lower revenue at its pharmacy-benefits management business.
The move comes after a Delaware judge last month blocked the company's attempt to hire Hank Mullany to be president of the company's retail operations after Wal-Mart Stores Inc. (WMT) filed a lawsuit that alleged Mullany's non-competition agreement prohibits him from working for CVS.
President and Chief Operating Officer Larry Merlo on Tuesday said, "I am confident we will find the right individual for this important role."
CVS said the duties will be covered by longtime company veterans Mike Bloom, executive vice president for merchandising and supply chain, and Scott Baker, executive vice president for internal operations and real estate.
Shares were up 5 cents at $35.13 in early trading.
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