The news: Costco has opted against dispensing the FDA-approved abortion pill mifepristone at its 500+ pharmacy locations, per Bloomberg. The retailer cited a lack of consumer demand for the medication.
How we got here: A coalition of faith-based activist shareholders pressured Costco not to dispense mifepristone. The religious groups will now ramp up pressure on CVS and Walgreens to stop dispensing the drug, per Bloomberg.
Why it matters: More people are getting medication abortions in states where they are legally permissible. This service usually involves patients picking up mifepristone at their pharmacy, which means more customer foot traffic for companies that offer the medication.
Medication abortions accounted for nearly two-thirds (63%) of tracked abortions in the US in 2023, per the Guttmacher Institute, up 10 percentage points from 2020. More medication abortions are also being conducted over telehealth, which typically entails mifepristone being accessed at a pharmacy. By the end of last year, 25% of abortions were conducted over telehealth, up from about 5% before Roe v. Wade was overturned, per data from the Society of Family Planning.
Our first take: There’s also been a push from pro-choice shareholders of major retail corporations to offer mifepristone. But Costco’s position could offend many of its customers and reverse the goodwill it has earned by holding firm on its DEI policies amid right-wing criticism. Costco might risk further brand damage if it stands by the reason of weak consumer demand when there’s evidence showing an uptick in medication abortions.
This is our immediate perspective. We’re actively developing this story throughout the day with more research and data from the EMARKETER database. Our in-depth analysis will be included in our client-only Briefings. Non-clients can click here to get a demo of our full platform and coverage.
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