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        Drug Stores Industry Profile

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        Excerpt from Drug Stores Industry Profile

        Companies in this industry sell prescription drugs, over-the-counter medications, health and beauty, and general merchandise from physical retail locations as well as online stores. Major companies include CVS Health, Rite Aid, and Walgreens (all based in the US), along with AS Watson Group (Hong Kong), Boots (UK), China Nepstar (China), Dm-Drogerie Markt and Rossmann (Germany), Jean Coutu and Shoppers Drug Mart (Canada), and Matsumoto Kiyoshi (Japan).

        Annual worldwide revenue for pharmaceutical manufacturing, an indicator of demand for prescription drug sales, exceeds $1.1 trillion and is expected to reach $1.5 trillion by 2023, according to a 2019 forecast from market intelligence firm IQVIA.

        The US drug stores industry includes about 45,000 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $270 billion.

        COMPETITIVE LANDSCAPE

        The evolving US health care system and growing competition from online and other retail channels are rapidly transforming the retail pharmacy business. Independent pharmacies, many in rural and low-income areas, are closing. Between 2009 and 2015, 9,654 pharmacies in the US closed, with independent pharmacies three times more likely to close than chain pharmacies, according to a study by the University of Illinois at Chicago. As a result, CVS and Walgreen dominate the US chain drug store industry, especially in big cities. Other major players include Walmart, which ranks among the top five US retail pharmacies by prescription revenue, and grocery-giant Kroger. In a ...

         
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