Why Are Cvs And Walgreens Always Together? (Solved)
CVS and Walgreens make up the two largest American drugstore chains, boasting thousands of shops across America.
Why Are CVS and Walgreens Always Together?
CVS is always located near Walgreens to maximize the benefit of each store’s advertisement. Both stores can maintain maximum market share while avoiding the need to search for locations if there is already a store at that spot.
Hotelling’s Model of Spatial Competition makes it possible for these two pharmacies to be located close together.
Hotelling’s laws is also called it. This law states that businesses who sell similar products often locate near each other to achieve the best market share.
For example, if a customer from either store is unhappy about the service, pricing, or product range, they can easily walk next door to either a CVS or Walgreens and take advantage of their services.
Further, the ‘Nash Equilibrium states that, should either CVS nor Walgreens change their strategy or not move near to one, it could lose significant market share as well reduce its profits.
Does CVS have the Same Owners as Walgreens
No, CVS and Walgreens do not have the same owners. CVS Health controls CVS Health while Walgreens belongs to the Walgreens Boots Alliance.
What Chain Was the First to Be Started?
Walgreens (in 1901), was founded in Chicago, Illinois. The U.S. CVS (in 1963), was founded in Lowell Massachusetts.
It is evident that Walgreens began operations much earlier than CVS.
What is the most profitable store? CVS or Walgreens
CVS’s 3rd quarter net income was $1.5 billion, while Walgreens’ net earnings were $677 million in the fourth quarter.
This clearly shows CVS to be the more profitable store of the two.
Which Chain Holds More Stores Than All Others?
Walgreens boasts nearly 18,750 stores worldwide, and more than 9,200 stores in the U.S. CVS however, boasts 9,900 retail outlets in traditional stores throughout the U.S.
What Chain Fulfills More Prescriptions
CVS fulfilled more than 352million prescriptions within the 3rd quarter 2019 while Walgreens filled 283 million in the 4th Quarter of that year.
You can read our posts about Walgreens and whether Walgreens franchises are available.
Conclusion: CVS/Walgreens are Always Together
Hotelling’s laws dictates that Walgreens or CVS will always be located near each other. It is because businesses selling similar products tend to cluster together to maximize market share. Locating together also helps each benefit from the other store’s advertising since customers would inevitably visit the same location.
.Why Are Cvs And Walgreens Always Together? (Solved)
