According to Associated Press reports, America’s pharmacies are the latest retailer to test smaller locations in addition to more ways to offer care as price-sensitive shoppers look elsewhere.
Customers may see Walgreens stores that are one-fourth the size of a regular location or CVS drugstores with entire primary clinics stuffed inside. AP reports: “Everyone looks at health care and says, ‘Oh yeah, it’s a market that’s ripe for disruption,’” said Neil Saunders, managing director of consulting and data analysis firm GlobalData. “But it isn’t easy to disrupt.”
The news outlet continues: Walgreens CEO Tim Wentworth said recently that his company could close a “significant portion” of underperforming stores in the next few years. CVS Health is going through a round of closings.
From JLL’s recent Retail Outlook: “As more tenants compete for limited retail space, the anticipated closure of thousands of pharmacies—primarily Walgreens—as well as Family Dollar locations, will open up more availability for freestanding retail. “
