A customer browses an aisle at a Walgreens pharmacy store in Deerfield, Ill., Thursday, July 25, 2024. America’s drugstores are testing smaller locations and making bigger bets on health care as they adjust to customers who need them less for convenience. A customer browses the first aid aisle at a Walgreens pharmacy store in Deerfield, Ill., Thursday, July 25, 2024. A patient health room is seen at a Walgreens pharmacy store in Deerfield, Ill., Thursday, July 25, 2024.
The stores have struggled with increased competition from Amazon and lower-price options like Walmart or Dollar Tree. They’re also dealing with theft, growing costs and thinner prescription reimbursement. Saunders notes these stores are less expensive to run and allow the company to serve areas without enough people to support a bigger store.
The selection of retail items also is smaller at some CVS Health stores that include Oak Street Health primary care clinics. The company plans to open about 25 of these combinations this year and 11 more next year, with either full-sized or smaller clinics n the stores.
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