Shares of CVS Health, Walgreens Boots Alliance and Rite Aid fell on Wednesday following reports that Amazon could open a physical pharmacy.
CVS’s share fell by about 3%, Walgreens’ share fell by about 4%, and Rite Aid’s share fell by more than 4%.
Business Insider reports that Amazon is considering whether to further drive prescription sales by opening an independent retail pharmacy or adding a pharmacy to Whole Foods Store.
According to the report, the debate is in the exploration phase, and if Amazon pushes the idea forward, it could take a year or more for the company to open a store.
Amazon has shown an interest in expanding into health care over the past few years. In 2018, we acquired the online pharmacy PillPack. Last year, we officially launched a business with Amazon Pharmacy. This is another move that has plunged inventory in drugstore chains. With this new service, customers in most states will be able to receive prescriptions covered by most insurers and deliver their medications to the door.
CVS, Walgreens and Rite Aid are already under pressure from Amazon as more consumers buy over-the-counter products such as shampoo and toilet paper online. Due to the turmoil, drugstore chains are looking for other ways to increase foot traffic and increase sales. CVS is adding more healthcare services to its stores, from primary care visits to sleep apnea screening. Walgreens has focused on fast and convenient services such as curbside pickup and courier. In addition, Rite Aid has renewed its store with a combination of new signboards and various products.
Separately, Amazon announced on Wednesday plans to acquire MGM Studios for $ 8.45 billion to add content to the Amazon Prime Video business.
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