The real reason Walgreens and other pharmacies are failing

Pharmacies large and small make money in two ways. Both are under threat. Consumer behavior: After the pandemic, more people shopped online, and consumers are less likely to buy things in-store.

By
Pastor Dewey Moede
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Needless to say things are changing so fast in the world…….There is hardly anyone ever in the Walgreens we go to, if there is, they are lined up at the pharmacy to get their prescriptions or shots. I always have wondered why they have such a huge assortment of perfumes and beauty products that just collect dust now. The store model is outdated. I know first hand from our pharmacist that staffing is also a major issue.
AI Ovewrview:

Pharmacies are struggling in the United States for many reasons, including:

  • Consumer behavior: After the pandemic, more people shopped online, and consumers are less likely to buy things in-store.
  • Competition: Pharmacies face competition from online retailers, Amazon, and grocery stores.
  • Reimbursement rates: Pharmacy benefit managers (PBMs) have been reducing reimbursements for prescriptions.
  • Staffing: There is a labor shortage, especially among pharmacists who are seeking better pay and working conditions. Pharmacy staff are also experiencing burnout.
  • Opioid crisis: Large opioid settlements have hurt many chains.
  • Theft: Pharmacies have been hit by shoplifting, and some have resorted to locking up items or closing high-theft stores.
  • Inflation: Inflation has made it difficult for pharmacies to turn a profit.
  • Overexpansion: Some chains overexpanded in the 1990s and 2000s to drive out competitors.
    The challenges facing pharmacies have a cumulative effect on the American healthcare system. When pharmacies close, it can create “pharmacy deserts” that leave millions of Americans without access to medical advice, vaccines, and other services.
By Helaine Olen, reporter in residence at the Omidyar Network

 

MSNBC: Walgreens’ announcement Tuesday that it plans to shutter 1,200 locations over the next three years made headlines, but that doesn’t mean it was a surprise. The company is losing money and indicated a significant closure announcement was coming this past summer.

And among pharmacies large and small, Walgreens is not the exception; it’s the rule. CVS announced it would close 300 locations earlier this year. Rite-Aid has shut down hundreds of locations since filing for bankruptcy in 2023. Independent pharmacists face an existential crisis, with many saying they are struggling to keep their doors open. More Here

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