![]() ![]() Amazon bought PillPack in 2018 for more than $700 million and started shipping prescriptions to Prime members last year. Online pharmacies and telemedicine have gained traction, too. Luke Sharrett/Bloomberg/Getty ImagesĬVS is closing 900 stores, and the big winner is Dollar General (DG) is launching its own health care initiative as it continues to take business from pharmacies.Ī Dollar General store in Crestwood, Kentucky, U.S., on Thursday, Aug. (DG) has also grabbed market share from drug stores, undercutting the sector with lower prices on similar items. The chains have built their own strong e-commerce businesses in recent years. (AMZN), or from brick-and-mortar giants like Walmart and Target. Some shoppers have replaced their trips to stores like CVS by buying their supplies online from Amazon (And they’re not going into CVS to buy tobacco, either, which the company stopped selling in 2014.) Its latest closings will “reduce store density in certain locations,” CVS said Thursday, which translates into the fact that CVS has too many stores too close to each other in some places.Ĭompetition from Amazon and Dollar GeneralĪlso, fewer people are heading to CVS and other drug stores to fill their prescriptions and shop for household staples these days. Maddie Meyer/Getty ImagesĬVS closed 244 stores between 20, yet it still has more than 9,900 stores. That gives CVS a reason to go,” said Hill.ĬVS got a lift from administering Covid-19 vaccines and tests, but it took a hit from people limiting their visits to stores and going to the doctor less often. ![]() “There’s too many pharmacies in the country and there’s too much pharmacy capacity. And then hit a Walgreens right next door. When you walk down the street or drive around the suburbs you’ll typically pass a CVS. “You’d much rather be selling health care services that are high-dollar value, high-margin versus greeting cards.” CVS bet that the deal will increase its profits from those patients’ health plans while helping to lower its costs.ĬVS also has been revamping its retail strategy and said Thursday that its stores will have three distinct models: locations that offer primary care services “HealthHub” stores that have on-site dieticians, nurse practitioners and lab services, and on-site treatment for chronic conditions such as diabetes and asthma and traditional stores.ĬVS is “really pivoting and leaning into the health care aspects of the business,” said George Hill, an analyst who covers the company and the health care industry at Deutsche Bank. ![]() To that end, in 2018 CVS completed a $69 billion acquisition of Aetna, the largest health care deal in history, to create a gigantic customer base of about 40 million Americans. The future of CVS is not selling snacks, candy, shampoo and greeting cards. Drug store closures can hurt local communities, creating access gaps for medications and essentials.ĬVS, the largest drug store chain in the United States, pointed to “changes in population, consumer buying patterns and future health needs” as factors in its decision to close stores. (RAD) have been shuttering stores for years, while independent pharmacies have come under pressure from chains. They are the latest moves in the long-running contraction of the US retail pharmacy sector. (CVS)’ closures shouldn’t come as a surprise. How to find lower prices and avoid empty shelves during the holiday shopping rush A family shops for toys at a Target store on Octoin Houston, Texas. ![]()
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