Bloomberg Businessweek
Walgreens and CVS Try to Fix America’s Flailing Pharmacies
May 17, 2024
Guests Jim Ellis, Katie Thomas, and Dana D’Auria discuss struggles of pharmacies like Walgreens and CVS amidst inflation, competition, and innovation. Topics include health and wellness initiatives, consumer responses to inflation, and investment strategies in uncertain markets.
26:01
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Quick takeaways
- Pharmacies are revamping layouts to enhance health and wellness offerings amid declining profits.
- Consumer shift to online platforms challenges traditional brick-and-mortar pharmacies in a competitive market.
Deep dives
Pharmacy Profit Margins Declining at Major Chains
Pharmacy profit margins are decreasing at major chains like CBS and Walgreens, leading to financial struggles. One key issue for drugstores is the declining profitability of front-of-store retail items due to increasing competition and inflation. As more people opt for online retailers like Amazon or Walmart for cheaper products, drugstores are losing revenue from both prescription pickups and retail sales.
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