Why Are Cvs And Walgreens Always Together? (Solved)
CVS and Walgreens are among the largest drugstore chains in America, with thousands of stores spread all over the country.
Why is CVS always partnered with Walgreens?
CVS and Walgreens are always located together because it allows each to benefit from the advertising of the other. This helps each store to keep maximum market share. It also saves time if another competitor has a location in the same area.
Hotelling’s Model of Spatial Competition helps to explain why the two pharmacies are so often found together.
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.
If a customer is dissatisfied about their service, pricing or product selection, they can simply walk to the Walgreens or CVS and get help.
Furthermore, according to the Nash Equilibrium, if CVS/Walgreens chooses to shift its strategy away from the other location, it can lose market share and lower its profits.
Do CVS And Walgreens Have The Same Owners?
CVS is not Walgreens’s owner. CVS Health controls CVS Health while Walgreens belongs to the Walgreens Boots Alliance.
Which Chain is the Most Popular?
Walgreens was founded 120 years ago (in 1901) in Chicago, Illinois, U.S. CVS was founded 57 years ago (in 1963) in Lowell, Massachusetts, U.S.
Therefore, it is clear that Walgreens became the first company to start (a long time earlier than CVS).
Are CVS and Walgreens the more profitable stores?
CVS posted a net loss of approximately $1.5B during the 3rd quarter 2019, while Walgreens reported net losses of $677M during the 4th quarter.
This clearly illustrates that CVS is much more profitable than either of its competitors.
What Chain has More Total Stores?
Walgreens boasts nearly 18,750 stores worldwide, and more than 9,200 stores in the U.S. CVS however, boasts 9,900 retail outlets in traditional stores throughout the U.S.
Which Chain Can Fill 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.
Conclusion: Why Are CVS and Walgreens Always 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. Customers will undoubtedly visit the same place, so it’s a good idea to be located together.
.Why Are Cvs And Walgreens Always Together? (Solved)