While there are certainly some who don’t want to call it a recession for various reasons…
The signs all sure seem to be there.
Mass factory closures.
Unemployment increasing.
And now mass pharmacy closures by one of the largest pharmacy chains in the world.
Walgreens has announced plans to close 1200 US stores over the next three years, with 500 just this year.
California is one of several hard hit states, as the Walgreens closures pile on top of the massive Rite Aid losses the state has already suffered. (The Bay Area alone has lost at least a dozen Walgreens, and Rite Aid has closed hundreds of stores throughout California.)
There are a variety of reasons for all of these closures, but they really all boil down to the same thing:
These stores aren’t making money.
Some of the issue is reimbursement pressure from health insurers eager to save money on prescriptions…
Some of it is just that retail pharmacies have been overbuilt for a long time. (Does a street corner really need three?)
And let’s face it – overall demand is just down as Americans tighten their belts and focus on saving money as recession fears increase.
Plus, let’s face it – the convenience of Amazon, DoorDash, and delivery pharmacies make it all that much harder to justify visiting yet another store.
(And that doesn’t even factor in grocery pharmacies, competition from Target, Walmart, and Costco, and of course competition from other pharmacies too.)
Do you still shop at a retail pharmacy? Why or why not? Drop a comment and let us know!
Links on this page may be affiliate links, for which the site earns a small commission, but the price for you is the same
Leave a Comment