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Amazon is said to have plans to open its own pharmacies across the United States. It will be a brick-and-mortar outlet and may be competing with Walgreens and CVS Health.
Another Amazon business venture is in the works
As per Reuters, when the reports of Amazon’s pharmacies have surfaced, shares of major drug stores, including Walgreens and CVS have dropped. Then again, it was noted that the talks are still ongoing and it may take some time before the pharmacy stores are actually launched.
Perhaps, Amazon’s drug stores may finally roll out after more than a year. This detail was shared by someone who is familiar with the matter.
Once Jeff Bezos’ company opens its pharmacy outlets, it was suggested that there is a high possibility that these will be built inside Whole Foods stores. The company already has an online-based pharmacy that was launched in November last year and it has been delivering medications to Americans since then.
Its online drug store subsequently triggered competition among drug retailers, but Amazon still managed to remain in the lead. The high sales could be one of the factors that made the company decide to build its physical drug stores in the U.S.
The report states Amazon is still in talks for these brick and mortar drug stores that will bear the company’s name and when the company was contacted, its spokesperson did not answer the questions about the plans. Rather, the rep said the company does not comment on such speculative reports.
Amazon wants a share from the prescription market
The United States’s prescription market is said to be worth around $370 billion and Amazon wants a share from it. Thus, it is planning to build a physical retail store for medicines, Business Insider reported.
In other words, opening pharmacy stores is part of the company’s strategy to win a larger slice in the prescription drug industry. Amazon also wants to further expand its business and the drug stores would be a good addition to its portfolio.
"Amazon Pharmacy is focused on making at-home delivery pharmacy easier and more convenient for customers," the company rep said regarding the company’s existing online drug store. "Customers can complete an entire pharmacy transaction on their desktop or mobile device through the Amazon App and have medications arrive at their door, with free two-day delivery for Prime members.
