Pharmacy Chains Ready Themselves For The Amazon Onslaught
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Pharmacy retail chains are preparing for hefty competition and the threat of declining foot traffic after discovering Amazon has launched an exclusive line of over-the-counter health products.
Many pharmacies rely on consumers buying other products such as cosmetics when they come in to a store to purchase medications. If customers are buying online rather than heading into brick-and-mortar stores, it could hurt profits for a number of U.S. pharmacies, CNBC reports.
In an effort to combat the threat, several companies have consolidated through mergers and acquisitions. Both Walgreens and Albertsons recently acquired portions of Rite Aid in order to grow their footprint and offerings.
Amazon's Basic Care line was first launched in August and offers a total of 60 private-label products, such as ibuprofen at low prices. While a 200 milligram, 500-pill bottle of ibuprofen costs an average of $12.41 at competing pharmacies like Walmart, CVS Health, Walgreens and Rite Aid, Amazon is charging $6.98, CNBC reports.