This is Viewpoints Explained…
In October, Walgreens announced it will be closing 12 hundred stores – about 1 in 7 of its locations. Drugstore chains have faced tough times in recent years… and it doesn’t seem to be letting up. CVS recently revealed a plan to cut $2 billion dollars in costs and announced layoffs for nearly 3,000 of its corporate staff. All of this comes just a year after rite aid filed for bankruptcy. As pharmacy chains continue to struggle, the question remains; can they turn things around?
After years of expansion and a boost from covid vaccinations, drugstores are now grappling with changing consumer shopping habits and competition from retail giants like Amazon, Costco, and Walmart. They have also had to contend with shoplifting and rising inflation since the pandemic. And both Walgreens and CVS have faced billions of dollars in fines over allegations related to overbilling, staffing shortages, and their role in the opioid crisis.
When stores like Walgreens and CVS close, it doesn’t just affect the bottom line… some patients have to travel further to fill their prescriptions. A study from the journal of The American Medical Association found that pharmacy closures disproportionately affected low-income urban areas where the majority of people were on medicare or medicaid.
One thing is clear – as consumer preferences shift and competition grows, these chains might have to reinvent themselves to survive.
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