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Why Are Cvs And Walgreens Always Together?

Why Are Cvs And Walgreens Always Together? (Solved)

CVS Pharmacy and Walgreens have over 20,000 locations all across America.

  • However, when visiting these pharmacies, you may have noticed that CVS and Walgreens stores are always located together. This is your answer!
  • Why Are CVS and Walgreens Always Together? (Solved)

    Why is CVS always partnered with Walgreens?

    CVS, Walgreens and other pharmacies benefit by being located close together. This helps each store to keep maximum market share. It also saves time if another competitor has a location in the same area.

  • If you want to know more about the effect of being together on their sales, which one has more stores, and which one is more profitable, keep on reading!
  • Here are more reasons why CVS and Walgreens should always be partnered
  • Another reason why these two pharmacies are often located together is to take advantage of Hotelling’s Model of Spatial Competition.

    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.

    For example, if a customer from either store is unhappy about the service, pricing, or product range, they can easily walk next door to either a CVS or Walgreens and take advantage of their services.

    Further, the ‘Nash Equilibrium states that, should either CVS nor Walgreens change their strategy or not move near to one, it could lose significant market share as well reduce its profits.

    What are the owners of CVS and Walgreens?

    No, CVS and Walgreens do not have the same owners. CVS Health is the owner of CVS, while Walgreens falls under Walgreens Boots Alliance.

    Why Are CVS and Walgreens Always Together? (Solved)

    What Chain Was the First to Be Started?

    Walgreens, which was founded in Chicago in 1901, U.S., 120 years ago, CVS was formed in Lowell in Massachusetts in 1963, U.S.

    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 shows clearly that CVS is the more profitable of the two stores.

    Why Are CVS and Walgreens Always Together? (Solved)

    Which Chain Holds More Stores Than All Others?

    Walgreens has close to 18,750 stores all over the world, with 9,200+ stores in the U.S. alone. CVS however, boasts 9,900 retail outlets in traditional stores throughout the U.S.

    Which chain fills more prescriptions?

    CVS filled over 352,000,000 prescriptions in its third quarter 2019. Walgreens only filled 283 million of those prescriptions.

    To learn more about Walgreens, you can see our related posts on why Walgreens is so expensive, if Walgreens is a franchise, and also some interesting Walgreens statistics.

    Why Are Cvs And Walgreens Always Together? (Solved)

    See also  Cvs Mission Statement