The shrinking presence of brick-and-mortar pharmacies is opening doors for new chain models to emerge, NJBiz reported Dec. 2.
Before the pandemic, drugstore chains had record growth, but between 2022 and 2024, some of the biggest chains such as CVS and Walgreens shuttered around 2,100 stores across the U.S. In August, a study found nearly half of U.S. counties lack easy access to a drugstore.
"What you're seeing now with the chains is something we independents dealt with two-plus decades ago, and that's the reality of the PBMs rendering the operation of a pharmacy completely unviable," Anthony Minniti, PharmD, a third-generation pharmacist whose family took over Camden's Bell Rexall Pharmacy and 2024 president of the New Jersey Pharmacists Association, told NJBiz. "Now, most grocery stores have closed their pharmacy departments altogether. Same with retailers like Target. And of course, the chains are closing at rates never seen before. Independents, likewise, are continuing to close, but not at the same relative percentages of the chains.'"
The shift in model comes from consumer behavior and buying pattern changes. A J.D. Power 2024 U.S. Pharmacy Study found consumers' overall satisfaction with mail-order pharmacies increased by six points, compared to a 10-point decrease for retail pharmacies. Consumers cited short-staffed stores, longer wait times, lower trust in pharmacists and difficulty ordering prescriptions as the reason for the fall.
Digital pharmacies and telehealth are growing in popularity among clients, and a few companies are taking advantage of the shift. For example, Amazon Pharmacy plans to expand its online pharmacy network to reach nearly half of Americans with free, same-day delivery of prescriptions. The change could solve one of the industries' biggest pain points: lack of convenient and affordable access to medication.
Telehealth could also present a "fantastic opportunity for independent retail pharmacy," Dr. Minniti said.