These are challenging times for retail pharmacies, with some of the biggest names in the industry closing stores and announcing layoffs. But is the future brighter? A new report from Colliers says it could be, if retail pharmacies begin offering new healthcare services and embrace such innovations as home delivery and on-demand consultations with pharmacists.
Such innovations could help retail pharmacies reverse the recent trend of store closures, Colliers reported in its fourth quarter Healthcare Services Report, released earlier this week.
The numbers show that retail pharmacies do need to make changes. According to Colliers’ report, Walgreens last year announced that it would close 1,200 of its stores by the year 2027.
Walgreens’ biggest competitor, CVS, announced 2,900 corporate layoffs last year. Rite Aid filed for bankruptcy in October of 2023 and plans to close 800 stores, which would allow the chain to emerge from bankruptcy with 1,300 stores.
Then there are the store closings that have already happened. According to RetailStat, CVS ended 2023 with 9,395 U.S. stores. That’s down from 9,939 stores in 2021.
RealStat reported that Walgreens ended 2023 with 11,936 stores, down from 13,456 stores in 2019.
Colliers’ report says that retail pharmacies are working to evolve to better meet the needs of consumers. Collier says that pharmacies are rearranging their store footprints and designs and are also expanding the healthcare services they are offering, with many offer medical consultations and check-ups.
Colliers in its report recommends that retail pharmacies offer not just in-person consultations but online ones, too. That would help them reach customers who are unwilling or unable to leave their homes.
Delivery options are important, too. In its report, Colliers said that pharmacies should invest in alternative methods of delivering medication, including home-day delivery and same-day delivery. They should also offer on-demand support from pharmacists, Colliers said.
What does this look like? Colliers says that pharmacies need to allow customers to use their phones, laptops or tablets to hold video calls with pharmacists to discuss medications. They should also allow consumers to order their medication online and then either pick their pills or ointments up in person or schedule a delivery to their homes.
More change will be coming to the retail pharmacy market. But several big names continue to dominate it. Colliers reports that as of the end of 2023, CVS Health Corporation held a 25.7% share of the U.S. prescription drugs market.
Walgreens Boots Alliance came in second, holding a 14.7% share, while Cigna pulled in third place with a share of 10.6%. UnitedHealth Group (a share of 6.8%) and Walmart Stores (4.9%) nabbed the fourth and fifth slots in the prescription drugs market in the United States.