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Why Are Cvs And Walgreens Always Together?

Why Are Cvs And Walgreens Always Together? (Solved)

CVS and Walgreens, which have thousands of locations across the United States, are two major drugstore chains.

  • However, when visiting these pharmacies, you may have noticed that CVS and Walgreens stores are always located together. Let me tell you, this is a confusing question.
  • Why Are CVS and Walgreens Always Together? (Solved)

    Why Are CVS and Walgreens Always Together?

    CVS and Walgreens are always located together because it allows each to benefit from the advertising of the other. It helps both stores to maintain maximum market share and avoid having to research the location if a competitor already has a store in that location.

  • Keep reading to find out more about their combined sales, the impact of having them together, and which stores are more profitable.
  • Additional Reasons CVS And Walgreens Are Always Together
  • Hotelling’s Model of Spatial Competition makes it possible for these two pharmacies to be located close together.

    Hotelling’s law (also known as Hotelling’s law) states that businesses selling similar products will tend to cluster close to one another to get the highest market share.

    One example is that if customers are unhappy with their product or service they can go next-door to a CVS/Walgreens and avail of their services.

    According to the “Nash Equilibrium”, if one CVS or Walgreens changes its strategy, and does not want to be located near the other, they will lose a lot market share and decrease their profits.

    Is CVS owned by Walgreens and CVS?

    CVS Health and Walgreens are not owned by the same people. CVS Health holds CVS Health, while Walgreens is part of the Walgreens Boots Alliance holding company.

    Why Are CVS and Walgreens Always Together? (Solved)

    Which chain was the first to be established?

    Walgreens (in 1901), was founded in Chicago, Illinois. The U.S. CVS (in 1963), was founded in Lowell Massachusetts.

    Therefore, it is clear that Walgreens became the first company to start (a long time earlier than CVS).

    Which is more profitable, CVS or Walgreens?

    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 clearly shows that CVS has the higher profit margin of both stores.

    Why Are CVS and Walgreens Always Together? (Solved)

    Which Chain Holds More Stores Than All Others?

    Walgreens is home to close 18750 shops around the world. There are also 9,200+ U.S. stores. CVS is home to 9,900 of the traditional retail stores found in the U.S.

    Which Chain Can Fill More Prescriptions

    In the 3rd quarter of 2019, CVS filled more than 352 million prescriptions, whereas Walgreens filled 283 million prescriptions in the 4th quarter of the same year.

    For more information about Walgreens you can check out our other posts. These include why Walgreens costs so much, whether Walgreens has a franchise and some fascinating Walgreens statistics.

    Why Are CVS and Walgreens Always Together? (Solved)

    Conclusion: CVS and Walgreens are always together

    Hotelling’s Law dictates that Walgreens is always near CVS. This law says similar businesses cluster together in order to maximise their market share. 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)

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