'Why Walgreens And CVS Are Shutting Down Thousands Of Stores', tales of the Retail Apocalypse

I closed Company Man asks 'The Decline of Party City...What Happened?' A tale of the Retail Apocalypse with a program note.

As for who benefits from the departure of Party City from the market, in addition to the usual suspects of Amazon and Walmart, Company Man Mike mentioned Walgreens, which is having its own issues and could use the boost, and Spirit Halloween. CNBC and Company Man have videos about both chains, which I plan on using in future Retail Apocalypse posts.

I'm saving Spirit Halloween for Spooky Season, but now is a good time for CNBC explaining Why Walgreens And CVS Are Shutting Down Thousands Of Stores.

In its fiscal third-quarter report, Walgreens announced its plans to close a ‘significant’ amount of stores, acknowledging only 75% of its 8,600 stores were profitable. While no specific stores were tapped for closure yet, more than 2,000 locations could face the chopping block by 2027. This just the latest sign of trouble for the struggling retail pharmacy sector as CVS and Rite Aid both announced large closures in the past year. Watch the video above to learn why U.S. pharmacy chains are fighting for survival.

I'm a diabetic and asthmatic, so I am in my local Walgreens a lot to pick up my prescriptions. I also go there to pick up other supplies, but no longer my blood glucose test strips. I found out CVS had cheaper test strips, so I bought them there until my wife found them on Amazon for even cheaper. We now have them delivered on a regular schedule — price and convenience! That makes us examples of customers shifting their front-of-store shopping to Amazon. If that's the trend with party supplies and seasonal items, then Amazon and Walmart will benefit more from the closing of Party City than Walgreens or CVS.

As I'm fond of writing, it's always a good day when I learn something new, and I learned a lot about the importance of the pharmacy to Walgreens and CVS — 76% of Walgreens in-store sales and 60% of the company's total revenue! Also, CVS is the leading Pharmacy Benefit Manager with CVS Health/Caremark having 34% market share. Since CVS also owns Aetna Insurance, it looks like they profit both coming and going. Near vertical integration, anyone?

Speaking of learning something new, while I blogged about food deserts when I began this blog, this is the first I've heard about pharmacy deserts. Same story, different market segment. One of the solutions is the return of mom-and-pop pharmacies. Since I support Small Business Saturday, I approve.

CNBC concentrated on Walgreens, so I'm switching to CVS with Retail Archaeology asking What Is Going On At CVS?

In this episode we take a look at two CVS Pharmacy locations.

YouTube has an AI summary of this video.

This video explores the current state of CVS Pharmacy, examining two locations and their changing role in the retail landscape. The creator discusses the decline of traditional drugstore offerings and the impact of CVS's acquisition of Aetna on its overall business.

That's surprisingly accurate.

Erik of Retail Archaeology also asked What Is Going On At Walgreens?

Let's take a look at what's going on at Walgreens.

This video also has an AI summary.

This video explores the current state of Walgreens stores, examining their recent struggles and changes. The creator visits two locations, one updated and one not, highlighting issues like declining sales, high prices, and a shift towards healthcare services. They also discuss the impact of these changes on the overall shopping experience.

I'm glad Erik mentioned Target instead of Walmart. As I wrote most recently in Company Man explains 'Walmart - Why They're Hated' for Black Friday/Buy Nothing Day, "I'm one of those who call Target "Tar-zhay" and shop there regularly, helping contribute the demise of both Sears and KMart. As I wrote once on my Facebook page, 'between Walmart and KMart, I shop at Target.'"

Both CNBC and Erik of Retail Archaeology think that Walgreens is in worse shape than CVS. This contradicts the comments I've been getting on the CVS video at Dreamwidth. A new follower of mine there seems to have it in for CVS.

That concludes today's tale of the Retail Apocalypse. Stay tuned for the Sunday entertainment feature. Super Bowl commercials and halftime show, anyone?