Target's Wellness Initiative Goes Mobile

Mobile healthcare devices may be the next big leap in personal communications, and mass retailer Target is positioning itself to ride on that trend's coattails, preparing to launch in May a connected care department within its stores.

Target sold the management of its pharmacy business to drugstore operator CVS Health in 2015, but is planning to expand the healthcare services it offers its customers by allowing them to input, record, and monitor their personal wellness data via smartphones and other connected devices. Called Connected Health, Target will be rolling out the new program at 550 stores next month, a move Fortune termed a transition to offering healthcare services as a "consumable retail product."

The popularity of personal health monitoring devices from companies such as Fitbit, which itself has already grown into a $2 billion business that sold over 8 million connected health and fitness devices in the fourth quarter alone, indicates there's a tremendous market opportunity available. CVS has also launched several digital tools making monitoring of health and wellness information easier through a pharmacy app that runs on smartwatches.

The website Twice says Target is piloting 14 medical-grade products, including wireless scales and blood pressure monitors, at its centers, and characterizes wellness as one of its four "signature" pillars of opportunity. The retailer said those areas represent about 30% of its business, they're growing three times faster than the rest of its operations, and it is committing significant resources to expand them further.

By combining a growing niche with a targeted opportunity, Target is seeking to enjoy the best of both worlds. It can piggyback onto CVS's healthcare prowess and the expanding interest on taking control of one's personal healthcare decisions, by helping its customers do so in a connected fashion.