They also have a few small shops inside the mall, with a few departments within each store.
When you visit a CVS store, they will almost always have a Walgreens store next door. Since these pharmacies are usually located so close together, people use them interchangeably. These two particular pharmacy chains are referred to as “competing”. Sometimes a larger chain will call their pharmacies “regional” stores.
Why Are CVS and Walgreens Always Together?
Walgreens knows that in order to gain customers, they need to make it easy for consumers to find them. A CVS near Walgreens, gives Walgreens the ideal location to provide services to consumers.
While the couple are doing their best to get to the top, they learn that there are many people who are doing just the same, and they also see that they have the same chances of reaching their goal.
More Reasons Why Walgreens And CVS Are Always Located Together
A second reason why it is common for drugstores to be located together is that they can take advantage of Hotelling’s model of spatial competition.
The idea is that when we have a lot of different products to sell, a store that specializes in one product is the most advantageous.
Customers are more likely to shop in grocery stores because the products they sell are cheaper and more available compared to the products in other stores.
This means that, if either company fails to change its strategy, it would lose a large amount of market share and reduce its profits in the long run.
Do CVS And Walgreens Have The Same Owners?
Which Chain Started First?
Walgreens and CVS are the world’s largest drug stores and have the second-largest retail business in the United States.
Furthermore, while the Walgreens location actually opened a lot earlier, Walgreens only began operations in one building, and as the article points out, the store in that building was never open, so the store never actually became a destination in its own right. It seems to me like Walgreens and CVS are only “one and the same” by happenstance.
Is CVS Or Walgreens The More Profitable Store?
As of November 2019, CVS reported a net sales of about $70 billion, whereas Walgreens reported a net sales of $23 billion in its 4th quarter.
This one is more subtle. In the US, the “economy” is the total volume of sales done by all stores in the chain, but there’s no guarantee that the stores with a larger dollar value will have a larger total volume. So it’s possible to have a “larger economy” that still has a smaller volume.
Which Chain Has More Stores In Total?
The former drugstore chain, now called Walgreen’s, has a market cap of over $63 billion. The latter corporation has a market cap of over $47.8 billion.
Which Chain Fills More Prescriptions?
CVS filled more than 352 million prescriptions in the 3rd quarter of 2019. However, this number was much higher than other major retail pharmacies, such as Walgreens which filled 283 million prescriptions in the 4th quarter of 2019.
When Walgreens is discussed, most people also discuss, Wal-Mart, which is one of the largest players in the pharmaceuticals market. Walgreens is a smaller player in the pharmaceuticals market, though, and its business practices are often criticized.
Conclusion: Why Are CVS and Walgreens Always Together?
This is true for a number of reasons. Locating in the same place as the other store helps to make sales for both stores, since customers are more likely to visit the store that’s easier to get to. Additionally, these two stores would benefit from each others’ advertising since customers would be more likely to visit the store with the most attractive exterior.
- 11 Biggest Walgreens Competitors (your Full Guide)
- Does Walmart Own Walgreens? (not What You’d Think)
- 9 Reasons Why Walgreens Is So Expensive!
- 11 Biggest Cvs Competitors (your Complete List)
- Walgreens Slogan (what Is It, History Meaning + More)
- Is Walgreens A Franchise? [all You Need To Know]
- Does Walgreens Make Keys? [answered!]
- Do Walgreens Have Atms? [locations, Fees, Withdraw Limits, Accepted Cards + More]
- Does Walgreens Have Free Wi-fi? [full Guide]
- What Is Walgreens? (what Is It Known For, How Is It Different, Type Of Store + More)