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.

You may also have observed that Walgreens and CVS stores are often located in the same pharmacy. Here is the answer to this bewildering question!

What is the Difference Between CVS and Walgreens?

CVS and Walgreens always have their stores together as it gives them each the opportunity to take advantage of one another’s marketing. They can both maintain maximum market share, and it saves them the effort of researching where a competitor might be located.

If you want to know more about the effect of being together on their sales, which one has more stores, and which one is more profitable, keep on reading!

More Reasons Why Walgreens And CVS Are Always Located Together

Hotelling’s Model of Spatial Competition is another reason these pharmacies often are located next to each other.

Also called Hotelling’s law, it states that businesses that sell similar products tend to locate close together to obtain the maximum market share that is possible.

If a customer is dissatisfied about their service, pricing or product selection, they can simply walk to the Walgreens or CVS and get help.

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.

Do CVS And Walgreens Have The Same Owners?

No, CVS and Walgreens do not have the same owners. CVS Health is the owner of CVS, while Walgreens falls under Walgreens Boots Alliance.

What is the most profitable store? CVS or Walgreens

As of November 2019, CVS reported a net income of about $1.5 billion during its 3rd quarter, whereas Walgreens had net earnings of $677 million during its 4th quarter.

This shows clearly that CVS is the more profitable of the two stores.

What Chain has More Total Stores?

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

CVS filled 352 million prescriptions during the third quarter 2019, while Walgreens filled 283 millions prescriptions in that same period.

See our Walgreens related posts to learn more about Walgreens.

Why Are Cvs And Walgreens Always Together? (Solved)