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In recent years, under the trend of prescription outflow, the domestic pharmaceutical retail industry has accelerated development, a number of small and medium-sized pharmacies have accelerated the elimination or merger and reorganization, and the chain giants are speeding up the race to increase market share
.
For example, in the first nine months of this year, the four major chain drugstores in China all added more than 1,000 new stores
.
Unlike the domestic landscape, CVS, the second largest chain drugstore operator in the United States, stated on November 18 that it plans to close about 900 stores in the next three years, equivalent to nearly 10% of its total number of stores.
The closure of these stores is expected to result in In the fourth quarter, it incurred $1 billion to $1.
2 billion in impairment charges
.
The company is accelerating its shift from retail to healthcare services
.
The company also plans to add primary care offices in certain locations and transform more stores into health centers to provide services such as diagnostic tests, mental health and hearing checks
.
Regarding the reasons for closing hundreds of stores, it can be seen from a statement by CVS that after the epidemic, the demand for online shopping has increased and people's demand for prescription drug delivery is increasing.
CVS is inconvenient for customers to visit its pharmacies.
Hope to provide them with more choices and allow them to quickly get the drugs they need
.
CVS also pointed out in the statement: "The company has been evaluating demographic changes, consumer buying patterns and future health needs to ensure that consumers and businesses are provided with appropriate store categories in appropriate locations
.
" The data shows that the size of the US prescription drug market Has reached hundreds of billions of dollars
.
But like domestic chain pharmacies, CVS is also facing digital challenges.
According to reports, Amazon is considering opening physical retail pharmacies in the United States
.
This move may intensify market competition
.
As of May 2019, the American chain pharmacy CVS has closed 46 underperforming chain pharmacies.
It also announced that the promotion of the CarePass membership program has countered the cannibalization of the retail pharmaceutical industry by the e-commerce giant Amazon
.
According to CVS’s recently announced third quarter results, the company’s total revenue in the third quarter reached US$67.
1 billion, a year-on-year increase of 3.
5%
.
But the net profit for the quarter was US$1.
2 billion, a year-on-year decrease of 20.
3%; adjusted earnings per share was US$0.
93, compared to US$1.
17 in the same period last year
.
The company explained that the main reason for the decline in net profit was higher operating income in the second quarter of 2020, which offset part of the growth rate this quarter
.
CVS's main business is divided into four sections: pharmacy services, retail pharmacies/long-term care, medical health benefits and other businesses
.
In the third quarter, CVS's retail and long-term care revenue increased by 5.
9% year-on-year, mainly due to the increase in the number of prescriptions, the increase in store revenue, and the increase in the number of diagnostic tests
.
In fact, not only CVS, but as early as August 2019, American drugstore Walgreens also announced plans to close its 200 stores in the United States, accounting for less than 3% of the total number of stores in the United States
.
The company said that the closure of stores is part of its transformation cost management plan, which aims to reduce cost pressures, and it is expected to save more than 1.
5 billion in expenses every year before the 2022 fiscal year
.
Earlier that year, Walgreens parent company Walgreens and Boots Group also announced that they would close 200 stores in the UK
.
The company also said that it expects to include between US$1.
9 billion and US$2.
4 billion in expenses related to the restructuring, involving real estate, severance payments and other costs
.
.
For example, in the first nine months of this year, the four major chain drugstores in China all added more than 1,000 new stores
.
Unlike the domestic landscape, CVS, the second largest chain drugstore operator in the United States, stated on November 18 that it plans to close about 900 stores in the next three years, equivalent to nearly 10% of its total number of stores.
The closure of these stores is expected to result in In the fourth quarter, it incurred $1 billion to $1.
2 billion in impairment charges
.
The company is accelerating its shift from retail to healthcare services
.
The company also plans to add primary care offices in certain locations and transform more stores into health centers to provide services such as diagnostic tests, mental health and hearing checks
.
Regarding the reasons for closing hundreds of stores, it can be seen from a statement by CVS that after the epidemic, the demand for online shopping has increased and people's demand for prescription drug delivery is increasing.
CVS is inconvenient for customers to visit its pharmacies.
Hope to provide them with more choices and allow them to quickly get the drugs they need
.
CVS also pointed out in the statement: "The company has been evaluating demographic changes, consumer buying patterns and future health needs to ensure that consumers and businesses are provided with appropriate store categories in appropriate locations
.
" The data shows that the size of the US prescription drug market Has reached hundreds of billions of dollars
.
But like domestic chain pharmacies, CVS is also facing digital challenges.
According to reports, Amazon is considering opening physical retail pharmacies in the United States
.
This move may intensify market competition
.
As of May 2019, the American chain pharmacy CVS has closed 46 underperforming chain pharmacies.
It also announced that the promotion of the CarePass membership program has countered the cannibalization of the retail pharmaceutical industry by the e-commerce giant Amazon
.
According to CVS’s recently announced third quarter results, the company’s total revenue in the third quarter reached US$67.
1 billion, a year-on-year increase of 3.
5%
.
But the net profit for the quarter was US$1.
2 billion, a year-on-year decrease of 20.
3%; adjusted earnings per share was US$0.
93, compared to US$1.
17 in the same period last year
.
The company explained that the main reason for the decline in net profit was higher operating income in the second quarter of 2020, which offset part of the growth rate this quarter
.
CVS's main business is divided into four sections: pharmacy services, retail pharmacies/long-term care, medical health benefits and other businesses
.
In the third quarter, CVS's retail and long-term care revenue increased by 5.
9% year-on-year, mainly due to the increase in the number of prescriptions, the increase in store revenue, and the increase in the number of diagnostic tests
.
In fact, not only CVS, but as early as August 2019, American drugstore Walgreens also announced plans to close its 200 stores in the United States, accounting for less than 3% of the total number of stores in the United States
.
The company said that the closure of stores is part of its transformation cost management plan, which aims to reduce cost pressures, and it is expected to save more than 1.
5 billion in expenses every year before the 2022 fiscal year
.
Earlier that year, Walgreens parent company Walgreens and Boots Group also announced that they would close 200 stores in the UK
.
The company also said that it expects to include between US$1.
9 billion and US$2.
4 billion in expenses related to the restructuring, involving real estate, severance payments and other costs
.
