The trend: Consumers are less satisfied with chain drugstores than with mail-order pharmacies, mass market merchandisers, and supermarket pharmacies, according to JD Power’s US Pharmacy Study. Our take: We expect consumers to increasingly explore different channels for getting their prescriptions, both in-person and online—especially folks in areas affected by drugstore closures. CVS and Walgreens have a built-in advantage of established pharmacy customers, but will lose more of them if they don’t address long lines at the counter and improve their online and in-app capabilities.

The news: CVS’s Q2 earnings topped estimates, buoyed by solid performance in its retail pharmacy segment and signs that its health insurance division is finally turning things around. Our take: CVS may not be thriving compared with earlier in the decade, but it’s in a good position relative to most of its rivals. That’s largely because of its diversified footprint across healthcare (pharmacy, insurance, PBM) that prevents the company from being overexposed in one struggling sector. CVS’ ongoing company turnaround could be a good sign for the similarly structured UnitedHealth, DOJ investigations notwithstanding.

Retail pharmacy reputations continue to slide: Even though retail pharmacies are rated poorly by consumers, pharmacists are still trusted sources. Newer pharmacy models create opportunities for drugmakers to build closer ties with pharmacists.

On today’s podcast episode, we discuss the main reasons YouTube is the most watched platform on TVs, how “Planet YouTube’s” gravitational pull is disrupting other media types, and what the biggest threat to its dominance is. Join Senior Director of Podcasts and host Marcus Johnson, Vice President and Principal Analyst Jasmine Enberg, and Principal Analyst Bill Fisher for the conversation. Listen everywhere and watch on YouTube and Spotify.

Once valued at $100 billion in 2015, Walgreens Boots Alliance has seen its market value plummet to approximately $10 billion today, with shares down 45% in the last 12 months—making it the worst-performing stock in the S&P 500 in 2024.

Consumers are turning to digital channels for medical information and advice and to research healthcare products, treatments, and services. Here’s what healthcare and pharma marketers need to know about converting information-seeking consumers into customers.

On today’s podcast episode, we discuss how Walgreens went from “pharmacy behemoth to distressed retailer”, the biggest lesson from its downfall, and where the company goes from here. Join Senior Director of Podcasts and host Marcus Johnson, and Senior Analysts Rajiv Leventhal and Zak Stambor, for the conversation. Listen everywhere and watch on YouTube and Spotify.

Pharmacy deserts increase across the US, mostly in rural areas: More pharmacy closures are expected, which means medication access for many patients will worsen before it improves.

The news: CVS is experimenting with a new store format designed around its pharmacy services rather than front-of-store household items and snacks, according to a WSJ report.

Walgreens’ downfall as a publicly traded company ends with $10B take-private deal: We think Walgreens’ retail pharmacy will eventually get back on track. The company's aggressive push into healthcare delivery was its undoing.

Talks of a Walgreens take-private sale are ramping up again: Walgreens could be divided into three parts if the sale proceeds. We explore the likelihood of a deal going through and what it means for Walgreens’ future.

Retail media’s rapid growth has spurred nonretail verticals to harness their first-party data to fuel their own commerce media networks. Retail media spending still dominates the commerce media landscape, but distinct challenger cohorts are finding their footing.

Retailers cut 6,419 jobs in January: That’s up 20% YoY, with more to come as chains like Joann plan to close hundreds of stores.

Parents sue Walgreens, OptumRx over son’s death: They allege that a sudden price hike of his asthma medication made it unaffordable. The lawsuit will put more pressure on regulators to lower medication costs and improve drug pricing transparency.

Retailers have already announced more than 2,000 closures: Macroeconomic headwinds and category-specific challenges are expected to lead to roughly 15,000 store shutdowns this year.

How the FDA’s approval of non-opioid pain pill could benefit pharma players: Pharmacies and drugmakers hope that the new treatment will help them avoid opioid-related legal issues in the future.

The battle between Walgreens and Cooler Screens underscores in-store retail media challenges: Glitchy technology, measurement challenges, and outdated store infrastructure doomed the partnership.

Walgreens’ Q1 earnings report sends shares soaring: For its Q1 turnaround to translate into long-term success, the company will need to foster an improved experience that convinces customers to actually step foot in its stores.

A bad in-store experience will drive many shoppers online: Consumers are frustrated by how many items are locked up and how difficult it can be to find help.

Healthcare and pharma companies will lean further into D2C in 2025: They’re cutting out health insurers and PBMs that bottleneck patient access to their products and services. But the industry’s push into D2C won’t be met without challenges.