The constant threat of declining foot traffic has pharmacy retail chains rethinking their strategy now that Amazon has penetrated the health product market.
Many retail pharmacies see their biggest profits from consumers coming into the store to pick up medication and cosmetic products. However, if consumers start purchasing their health products online through Amazon, brick and mortar retail chains like Walgreens and CVS could see a decline in profits.
Competing pharmacies like Walmart, CVS Health and Walgreens charge an average of $12.41 for a 500-pill bottle of ibuprofen compared to Amazon’s Basic Care line that offers the same bottle of ibuprofen for $6.98.
With Walgreens recent acquisition of Rite Aid and the company’s aggressive moves to grow their footprint, commercial real estate investors shouldn’t expect to see any vacant Walgreen stores on the market just yet in San Antonio.