Why Are Cvs And Walgreens Always Together? (Solved)

CVS and Walgreens make up the two largest American drugstore chains, boasting thousands of shops across America.

You may also have observed that Walgreens and CVS stores are often located in the same pharmacy. Let me tell you, this is a confusing question.

Why Are CVS and Walgreens Always Together?

Because CVS and Walgreens can benefit each other’s advertising, they are often located in the same location. They can both maintain maximum market share, and it saves them the effort of researching where a competitor might be located.

You can read on to discover more about the effects of their being together and find out which has more sales. Also, which store is more profitable.

More Reasons Why Walgreens And CVS Are Always Located Together

Hotelling’s Model of Spatial Competition is another reason these pharmacies often are located next to each other.

Hotelling’s laws is also called it. This law states that businesses who sell similar products often locate near each other to achieve the best market share.

A customer may complain about pricing, service or the product range at either of these stores. They can walk next to either Walgreens, CVS, or Walgreens, and receive their assistance.

Additionally, according to the ‘Nash Equilibrium’, if either CVS or Walgreens decides to change its strategy and not locate close to the other, it would end up losing a lot of market share and reduce its profits.

What are the owners of CVS and Walgreens?

CVS is not Walgreens’s owner. CVS Health owns CVS whereas Walgreens comes under the holding company Walgreens Boots Alliance.

What Chain Was the First to Be Started?

Walgreens (in 1901), was founded in Chicago, Illinois. The U.S. CVS (in 1963), was founded in Lowell Massachusetts.

Therefore, we can see that Walgreens started first (a lot earlier than CVS).

Are CVS and Walgreens the more profitable stores?

CVS reported an income of around $1.5 Billion during its 3rd Quarter 2019, while Walgreens posted net earnings in excess of $677 M during its 4th Quarter.

This clearly shows that CVS has the higher profit margin of both stores.

Which Chain Has More Stores In Total?

Walgreens has close to 18,750 stores all over the world, with 9,200+ stores in the U.S. alone. CVS, on the other hand, has 9,900 traditional retail stores in the U.S.

Which Chain Can Fill More Prescriptions

In the 3rd quarter of 2019, CVS filled more than 352 million prescriptions, whereas Walgreens filled 283 million prescriptions in the 4th quarter of the same year.

For more information about Walgreens you can check out our other posts. These include why Walgreens costs so much, whether Walgreens has a franchise and some fascinating Walgreens statistics.

Conclusion: CVS and Walgreens always go together

Hotelling’s law dictates that similar-product businesses should be clustered together to increase their market share. Walgreens, CVS and Walgreens can always be found together. Because customers will invariably visit the same store, it is advantageous to locate them together.

.Why Are Cvs And Walgreens Always Together? (Solved)