The Retail Apocalypse Now Threatens Drugstores, Too
Prescription medications aren't as profitable as they used to be, leaving chains like Walgreens more exposed to industry headwinds.
Not so special anymore.
Photographer: Steve Hockstein/Bloomberg
Are we headed for a drugstore apocalypse?
CVS Health Inc., America’s biggest pharmacy chain, rang a warning bell in February with a disappointing 2019 forecast that reflected pressure on its prescription-drug business. A month later, Rite Aid Corp., another big pharmacy operator, jettisoned executives amid continuing struggles as its stock price traded below $1. Then on Tuesday, No. 2 chain Walgreens Boots Alliance Inc. announced dismal second-quarter results and slashed its full-year guidance. Its shares tumbled more than 12 percent as both retail and pharmacy performance fell substantially short of expectations.