What is happening with pharmacies in the United States?
The simplest part of the problem is the scale. CVS and Walgreens have expanded nationally to over 9,000 and 8,000 stores, respectively.
But shoppers regularly complain about stores lacking staff, with products locked up to prevent theft, a legacy of the pandemic.
Shelves of snacks, makeup, greeting cards, and cleaning products were created to boost profits. But this type of sale has been declining for years — the result of a lost battle against Amazon, Walmart, Target, Costco, and dollar stores.
The chains have failed to add new incentives for shoppers AND none of them have built a significant online presence designed to give customers what they need.
The prescription problem
Given the retail difficulties, pharmacies might simply abandon convenience stores and focus on selling medications. But CVS and Walgreens say it is becoming increasingly difficult to profit from this part of their business as they face stiff competition from pharmacies that do not rely as heavily on prescription profits because they are part of retail giants, including Walmart and Costco.
Over the years, CVS and Walgreens have tried to rebrand themselves as healthcare centers, creating primary care clinics. But these operations cost time and money and have not been profitable.
The consequences for the consumer
When pharmacies close, some patients have to travel further to obtain the medications they need. Research shows that the closure of pharmacies leads to health risks, as older adults, particularly those with low incomes, end up not taking their medications.
Source: NPR and CNN