Pharmacy owners are redesigning their stores to attract former customers who have flocked to their competitors such as Amazon, Walmart and Dollar Tree, the Chicago Tribune reported Aug. 4.
There are more than 30,000 drugstores across the country, but locations are steadily closing amid financial pressures. Walgreens and CVS have announced closures on a rolling basis in recent years, and after Rite Aid filed for bankruptcy in late 2023, it has closed about 500 stores.
Other than disruptors, longstanding pharmacies are facing higher costs and fewer reimbursements, the Tribune reported.
To counteract the trend, Walgreens is trialing digital kiosks and stores that are one-fourth their usual size; CVS is going the opposite direction by setting up primary clinics inside pharmacies.
It's unclear which companies will win out. Walgreens is reducing its stake in VillageMD, a primary care business, and plans to close "a significant portion" of underperforming retail stores. CVS continues to report profits from Oak Street Health but is reportedly seeking a private equity backer to open new locations after underwhelming results.
Consumers are becoming less satisfied with brick-and-mortar pharmacies as interest shifts toward online and mail-order services, according to a recent J.D. Power study.
Neil Saunders, managing director of consulting and data analysis company GlobalData, told the Tribune that drugstores are no longer "America's convenience destination" like they used to be.