Glen Davis, MD, MBA’s Post

Walgreens just announced they are closing 1,200 stores, coming on the heels of similar announcements by other national retail chains. As national pharmacy chains shutter hundreds of stores, a troubling trend is emerging: the creation of pharmacy deserts. These closures, combined with the decline of independent pharmacies, are leaving many communities—especially rural and low-income areas—without access to essential medications and healthcare services. The closures are blamed on declining profits, competitive pressures from online retailers, and regulatory challenges. Continue reading: Pharmacy Deserts Are Growing https://lnkd.in/g2rPdc5K

Progressive Grocer's report sheds light on the closure of 1,200 Walgreens stores, following CVS Health Corp.'s decision to close 900 stores and Rite Aid Corp.'s closure of hundreds during bankruptcy. National chain pharmacies are facing challenges, impacting community-based pharmacies they once displaced. Despite this, there are still an estimated 22,000 independent pharmacies in the US. ProHealth Connect LLC stands with independents, aiming to support their survival efforts. Dispensing prescriptions often operate at a loss; success lies in front-of-the-counter sales and complimentary health programs. Managed care's OTC/Grocery programs attract customers, guaranteeing revenue. Our commitment to independents is clear, but the full impact remains to be seen. #prohealthconnect #otc_grocery #shoplocal

Walgreens reportedly in talks to sell to private-equity firm Sycamore Partners. The news comes as the struggling pharmacy chain begins shuttering 1,200 stores http://ow.ly/jjnj105Rfll

@Walgreens is missing a real opportunity to tune into a differentiator they have over #ecommerce competition: Direct human-to-human interaction with #people, which will rise in importance as AI advances into digital systems, workforce productivity, #customerrelationshipmanagement. If they'd take the time to consider how shoring up their #systems could help improve a disjointed #digital #UserExperience in support of its customers/employees, #efficiencies would be found. If they'd attempt to better understand the gaps in their the overall CX/ #CustomerExperience, I believe it would save them billions & attract/retain consumers. They should double-down on #AI for better #productivity and #retailmanagement in Pharmacies, for their workers; it would be empowering and a relief from what I see in there these days. As a consumer, the least handlers of my #healthdata & retail #buyinghabits is my goal. I'd like to see Walgreens stay around, so that none of us are in this precarious position to wonder which brand to turn to next (and where to again #sharedata ). And this wouldn't have to be another #layoff story. #Invest and #Empower your #customers to live and manage their lives better, by better understanding & supporting their entire #customerjourney. I have yet to see them take this action. I wish Walgreens would look more deeply at what is breaking down in-store and #ontheweb / in #app! #CX #DX #UX #humanitymatters 📌

𝐈𝐬 𝐲𝐨𝐮𝐫 𝐥𝐨𝐜𝐚𝐥 𝐩𝐡𝐚𝐫𝐦𝐚𝐜𝐲 𝐚 𝐛𝐢𝐠 𝐜𝐡𝐚𝐢𝐧 𝐩𝐡𝐚𝐫𝐦𝐚𝐜𝐲? 𝐈𝐟 𝐬𝐨, 𝐲𝐨𝐮 𝐜𝐨𝐮𝐥𝐝 𝐛𝐞 𝐢𝐧 𝐭𝐫𝐨𝐮𝐛𝐥𝐞... CVS, the largest US chain, closed 244 stores between 2018 and 2020. In 2021, it announced plans to close 900 stores. Rite Aid filed for bankruptcy last year and will close up to 500 stores. Many patients will be losing their local pharmacy. Those living in rural areas are at a huge risk. Walgreens has said 25% of their stores are not profitable - which are more likely to close? Rural ones with fewer patients or the busiest stores in big cities. This is something patients need to consider. #pharmacynews #retailpharmacy #pharmacystaffing #communitypharmacy #cvs #walgreens

Consulting by Kantar As Walgreens wraps up FY2024 with the announcement of its Q4 results, the sector's consistent decline is more than visible. The Q4 results highlighted a 3.5% decline in retail and pharmacy, leading this business's growth with a 9.6% increase this quarter. In addition to these declines, Walgreens has been rumored to close nearly 25% of stores by 2027, and this morning, the company provided more clarity on this initiative. The company is poised to close approximately 1,200 stores over the next three years, with nearly 500 aimed to close by 2025. This represents a 14% closure of stores as opposed to its initial announcement. These closures are a slight dent in the number of pharmacies around the US, with nearly 40,000 pharmacy stores operated by pharmacy chains, according to NACDS. Amarinder (Amar) Singh David Marcotte Andriana Bantra

It doesn’t seem like the existing pharmacy model is sustainable in the long term if conditions remain the same. Dollar stores, to a large degree, have largely taken away the appeal of the retail section of the pharmacy. The current reimbursement method makes it challenging for the pharmacy section to be profitable, but the pharmacy section can turn a profit. Something has to change. The store’s large footprint drives operating costs up. They often have the most desirable corner location in many markets. Would it make sense for them to divest of their real estate and focus on smaller, pharmacy only locations? Could they become the new end cap user in shopping centers to capitalize on the drive thrus? Why pharmacy chains like Walgreens and CVS are shuttering locations

DRUGSTORES/INDEPENDENT PHARMACIES REMODEL IN AN ATTEMPT TO SURVIVE, AS PHARMACY DESERTS GROW FOR MILLIONS OF AMERICANS: Independent Pharmacy owners are redesigning their stores to attract former customers who have flocked to their competitors such as Amazon, Walmart, CVS, and Dollar Tree, the Chicago Tribune reported August 4th. There are more than 30,000 drugstores across the country, BUT locations are steadily closing amid financial pressures from vertically integrated systems and some PBM's according to the latest study by GlobalData. Walgreens and CVS have announced closures on a rolling basis in recent years, and after Rite Aid filed for bankruptcy in late 2023, it has closed about 500 stores. Other than disruptors, longstanding pharmacies are facing higher costs and fewer reimbursements, the Tribune reported. To counteract the trend, Walgreens is trialing digital kiosks and stores that are one-fourth their usual size; CVS is going the opposite direction by setting up primary clinics inside pharmacies. It's unclear which companies will win out. Walgreens is reducing its stake in VillageMD, a primary care business, and plans to close "a significant portion" of underperforming retail stores. CVS continues to report profits from Oak Street Health but is reportedly seeking a private equity backer to open new locations after underwhelming results. Consumers are becoming less satisfied with brick-and-mortar pharmacies as interest shifts toward online and mail-order services, according to a recent J.D. Power study.  Neil Saunders, managing director of consulting and data analysis company GlobalData, told the Tribune that drugstores are no longer "America's convenience destination" like they used to be. #pharmacies #closures #accesstocare #lackofaccess #ruralareas #service #independentpharmacists #financialpressures #GlobalData #Surveys #data #Beckers #JDPowerStudy #CVS #Walgreens #AmazonPharmacy

🧠 Some of my general thoughts around Walgreens possibly in talks to go private with Sycamore Partners. 👩⚕️The retail pharmacy is facing unprecedented challenges, with shrinking margins, new competitors like Amazon and Cost Plus Drugs, and declining reimbursements from PBMs along with PBMs owned mail order. Walgreens Boots Alliance (WBA), a cornerstone of U.S. pharmacy retail, has seen its stock hit its lowest levels since the 1990s. 💰Sycamore Partners, a private equity firm with expertise in retail turnarounds (Staples, The Limited, Ann Taylor, etc.). A potential $9–10 billion acquisition at a 30% premium on the stock prior to Tuesday could give Walgreens the shelter it needs to restructure without the relentless pressure of public markets forcing short term decisions . 🔑 Why This Makes Sense: 1️⃣ Walgreens could sell high-value assets like Shields Health Solutions and CareCentrix to streamline and raise capital. 2️⃣ By going private, Walgreens gains the flexibility to rebuild its core retail and pharmacy business or potential lean into a blue ocean. 3️⃣ Carving out Boots and international operations might allow for a sharper focus on the U.S. market or vice versa given the margin profile in the international business being better. 🌪️ But there are challenges: execution risks, ongoing operational headwinds, and a tough market for selling assets like VillageMD where they have invested 6.2 billion since 2020. This move would require tough decisions but possibly create a clear vision going forward. Major question is - What does the retail pharmacy market look like domestically in 5 or 10 years? #healthcare Read my deeper thoughts here: https://lnkd.in/gwgbkCbv

NEWS: Walgreens closing their 1,200 store locations soon: I am a pharmacist and have been working in the retail pharmacy industry for the last 26 years. These PBMs (Insurance Companies) are very shrewd. They are the "Payor", on the other hand, they OWN their own pharmacies, like mail-order pharmacies in their own name. PBMs give good contracts and clever DIR fee algorithms to their own pharmacies. Most Regulators do not see the unrealistic competition or it is too complex for them to understand 😁 . Two big mistakes made by Walgreens: 1) Giving up their own PBM (WHI-Walgreens Health Initiatives) by their own corporate "PowerPoint Junkies", 2) Selling to or merging with Boots!! I see Chapter 11, I hope not!!