Convenient no more
The End Of Convenience: What The Downfall Of Walgreens Means For America
Chain pharmacies are flashing warning signs and shuttering stores. 7-Eleven is axing locations. The age of convenience is over.
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The Lede
The state of America's pharmacies is, in a word, bleak. Pharmacies should, in theory, be a reliable business. Many pharmacies serve as a convenient destination for all sorts of essentials, from aspirin to mascara. They are, in a sense, one of the last places where Americans go to shop in person on a regular basis. Despite these advantages, even pharmacy megachains are struggling to survive in the current environment.
Key Details
- Last week, Walgreens announced it would be closing 1,200 stores over the next three years, saying that some 25% of its outlets weren't profitable. Its rival CVS planned to shed nearly 3,000 jobs to cut costs.
- The demise of pharmacies is also part of the "retail apocalypse," which has intensified since the onset of the pandemic.
- On the other end of the business, pharmacies are expensive to run. Renting the physical space and paying an educated workforce of pharmacists mean that the fixed costs are high.
