Home Business CVS, Walgreens shares fall on report that Amazon might open brick-and-mortar pharmacies

CVS, Walgreens shares fall on report that Amazon might open brick-and-mortar pharmacies

Retailer indicators from CVS, Ceremony Assist and Walgreens shops.

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Shares of CVS Health, Walgreens Boots Alliance and Rite Aid are falling Wednesday on a report that Amazon might open brick-and-mortar pharmacies.

CVS shares have been down about 3%, Walgreens shares have been down almost 4% and Ceremony Assist shares have been down greater than 4%.

Amazon is contemplating whether or not to push additional into promoting prescriptions by opening standalone retail pharmacies or including pharmacies to Complete Meals shops, based on a report by Business Insider that cited three nameless individuals accustomed to the matter.

In keeping with the report, discussions are in exploratory phases and if Amazon strikes ahead with the thought, it may take greater than a 12 months for the corporate to begin opening shops.

An Amazon spokesperson wasn’t instantly accessible to touch upon the report back to CNBC. The corporate declined to remark to Enterprise Insider on its curiosity in opening retail pharmacies and mentioned it’s targeted on its at-home supply enterprise.

Amazon has proven curiosity in increasing into well being care over the previous a number of years. It acquired online pharmacy PillPack in 2018. Final 12 months, it formally entered the business with Amazon Pharmacy, one other transfer that despatched shares of drugstore chains tumbling. With that new service, prospects in most states can get prescriptions coated by most insurance coverage corporations and get medicines delivered to their door.

CVS, Walgreens and Ceremony Assist have already been squeezed by Amazon, as extra shoppers purchase front-of-store objects like shampoo and bathroom paper on-line. That disruption has brought on drugstore chains to look for other ways to drive foot traffic and boost sales. CVS is including extra health-care companies to its shops, from major care visits to sleep apnea screenings. Walgreens has targeted on speedy and handy companies, comparable to curbside pickup and residential supply. And Ceremony Assist has refreshed its shops with new signage and a special mixture of merchandise on cabinets.

Individually, Amazon introduced plans Wednesday to acquire MGM Studios for $8.45 billion, in a bid so as to add extra content material to its Amazon Prime Video enterprise.

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