The road traveled by regional drug chains and independent pharmacies is getting considerably rougher, and the future for them is filled with uncertainty.
The phenomenal growth of Walgreens and CVS has created a chasm in the trade class between them and everyone else. Even with its dramatic acquisition of the Jean Coutu Group's holdings in the United states, Rite Aid, the No. 3 drug chain, is still some $20 billion behind Walgreens and CVS in sales, and the industry leaders routinely open or acquire more stores in any given year than all but the top 10 drug chains operate in total. With that unprecedented scale comes a considerable advantage in buying power, marketing, technology, distribution and logistics, and other pivotal areas. Competing with companies that have such resources at their disposal and the expertise to deploy them effectively …
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