Walmart and Amazon Just Dug CVS and Walgreens’ Graves

CVS and Walgreens might want to start drafting their retirement speeches because Walmart and Amazon are swooping in, prescription pads in hand, ready to put them out of their misery. (Don’t worry, guys, Sears is saving a seat for you in the retail retirement home.) These two juggernauts just threw down their own Rx delivery gauntlets, and it looks like CVS and Walgreens are one more step closer to joining Blockbuster on the “Remember when?” list.

For starters, Walmart decided it’s not enough to sell you groceries, electronics, and maybe even a lawnmower all in one go. Now, they want to throw your cholesterol meds in there too. Earlier this week, they launched prescription delivery in six states, with plans to go nationwide by early 2025. By that point, Walmart will be able to deliver drugs to 86% of U.S. households. And yes, they’re promising it could land on your doorstep in 30 minutes or less.

Naturally, Amazon, not one to be left out, has been quietly expanding its own service. By the end of 2025, Amazon’s same-day medication delivery will be available to 45% of U.S. customers across 20 cities.

Amazon’s game plan is to make getting your meds as easy as forgetting what you ordered at 2 a.m. With their digital-first pharmacy, you don’t have to deal with grumpy pharmacists or long lines. Instead, you order online, and poof—your meds show up, sometimes in just a few hours. Need advice? You get 24/7 access to a pharmacist.

While Walmart and Amazon are dominating another sector of the world, CVS and Walgreens are hanging by a thread, throwing stores overboard in an effort to stay afloat. CVS just axed 3,000 jobs this month, on top of the 5,000 layoffs last year. Oh, and they’re also closing 900 stores. Walgreens, not wanting to feel left out, is closing 1,200 stores over the next few years, because apparently running out of places to get prescriptions is part of their master plan.

And let’s not forget Rite Aid, which is so deep in financial trouble it just hit the bankruptcy button. So far, they’ve shuttered over 500 stores, leaving even more Americans in a pharmacy dessert. 

With 131 million Americans relying on prescriptions, there’s a load of money to be made in the pharmacy business. But it’s clear that CVS and Walgreens are struggling to keep up with the changing times. Customers don’t want to wait in long lines or deal with understaffed stores anymore, especially when they can have Walmart or Amazon deliver everything straight to their door.

Walmart, with its 4,600 pharmacy locations, is putting itself within a short drive (or 30-minute delivery window) of nearly 90% of Americans. Meanwhile, Amazon’s “get your meds without leaving the couch” approach is a direct hit on the traditional pharmacy model. And let’s be honest—who wouldn’t prefer avoiding the awkward conversation about why their toothpaste is locked up behind glass?

By the way, Walmart’s stock has been steadily climbing this year, sitting comfortably around $83 as investors see big potential in its push into health and wellness. Walmart’s prescription delivery service could give it a significant edge over struggling pharmacy chains, and with health-related revenue already making up 12% of their sales, this move is a strong bet for future growth.

Amazon, on the other hand, saw its stock dip slightly to $185. But don’t be fooled—Amazon’s always playing the long game. Their pharmacy expansion could easily become a massive overhaul as they leverage their massive logistics network. And as more people jump on the convenience bandwagon, Amazon’s Rx business should eventually give them another leg up to keep dominating medicine cabinets.

As for CVS and Walgreens? They’re holding onto hope (and a shrinking number of storefronts). But with Amazon and Walmart delivering their way to dominance, it’s looking like the days of waiting in line for prescriptions might soon be as outdated as renting a DVD from Blockbuster.

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Stock.News has positions in Walmart, Amazon, CVS, Walgreens, and Rite Aid as mentioned in article.