**How CVS and Walgreens Are Navigating a Shifting Retail Pharmacy Landscape**
Much of the recent coverage surrounding major national drugstore chains Walgreens and CVS has centered around store closures. Walgreens, in particular, is generating headlines as it prepares to go private following its acquisition by Sycamore Partners. However, despite these setbacks, these retail pharmacy giants are far from doomed.
A white paper by Placer.ai offers a more nuanced picture of the current state of these businesses and their ongoing efforts to adapt.
According to the report:
– CVS experienced a 0.6% increase in total visits and a 2.9% rise in average visits per location in the fourth quarter of 2024.
– Walgreens faced lagging foot traffic overall, but also saw a rise in average visits per location last year.
These patterns have continued into 2025, pointing to a degree of resilience in both chains.
“National drugstore chains continue to offer consumers a valuable combination of convenience and specialization,” said R.J. Hottovy, Head of Analytical Research at Placer.ai. “Many of the specialized products and healthcare services they provide are difficult for grocers to replicate and challenging for independent retailers to scale.”
One of the strategic shifts proving effective for CVS has been its emphasis on health, wellness, and beauty products. The company has reduced its focus on traditional front-of-store categories – such as greeting cards and grocery items – to better cater to evolving consumer demands.
“This strategy seems to be enhancing the customer experience and contributing to improved foot traffic trends,” Hottovy explained. “We expect Walgreens to adopt a similar approach in the future.”
The white paper also underscored that CVS and Walgreens continue to dominate the offline pharmacy space, controlling a large share of in-person pharmacy visits even as both brands reduce their physical store footprints. Despite a shrinking number of locations, their overall market presence is gradually expanding due to more efficient operations and sharper business focus.
Still, the competitive landscape remains challenging.
“A number of grocery, superstore, club, and online retailers have stepped up their game with respect to pharmacy, which has increased the competitive pressures facing national drug stores,” Hottovy observed. “These chains are also using more aggressive pricing strategies and promotions, which present another headwind CVS and Walgreens must contend with.”
Whether these strategic retrenchments and new focuses will fully secure the long-term viability of CVS and Walgreens in an evolving marketplace remains to be seen. Yet, with ongoing store optimization and a renewed commitment to consumer health and wellness, both brands appear to be positioning themselves to remain significant players in the retail pharmacy landscape.
