For decades, CVS seemed like the perfect business. It was convenient, sold a mix of products people wanted, and everyone was forced to go there (or to one of its rivals) when they needed to pick up a prescription.
Now, however, the company has been fighting a war on many fronts. Consumers can order much of what made the chain convenient for delivery, and various online services, including Amazon, now fill prescriptions.
"At the rear of the store, business at pharmacy counters is being squeezed by stingier drug reimbursement rates and pharmacist wages. In the aisles, sales of everything from greeting cards to cosmetics are feeling the effects of cut-price competition," according to the Financial Times.
It's an evolving situation that has caused CVS rival Rite Aid to shut down all its stores, while CVS and Walgreens have closed thousands of locations between them.
"The whole drugstore four-wall economic model is collapsing on itself, in my opinion," said Josh ****** s, a portfolio manager at Janus Henderson Investors, told the Financial Times.
#business #amazon #walgreens
Now, however, the company has been fighting a war on many fronts. Consumers can order much of what made the chain convenient for delivery, and various online services, including Amazon, now fill prescriptions.
"At the rear of the store, business at pharmacy counters is being squeezed by stingier drug reimbursement rates and pharmacist wages. In the aisles, sales of everything from greeting cards to cosmetics are feeling the effects of cut-price competition," according to the Financial Times.
It's an evolving situation that has caused CVS rival Rite Aid to shut down all its stores, while CVS and Walgreens have closed thousands of locations between them.
"The whole drugstore four-wall economic model is collapsing on itself, in my opinion," said Josh ****** s, a portfolio manager at Janus Henderson Investors, told the Financial Times.
#business #amazon #walgreens
1 day ago
