SUBSCRIBE

CATEGORIES

Amazon looking at opening pharmacy stores in U.S. – Insider

imageStock Markets8 minutes ago (May 26, 2021 01:42PM ET)

(C) Reuters. FILE PHOTO: The logo of Amazon is seen at the company logistics centre in Boves, France, August 8, 2018. REUTERS/Pascal Rossignol/File Photo

(Reuters) -Amazon.com Inc is considering the launch of brick-and-mortar pharmacies in the United States, Insider reported on Wednesday, triggering a drop in shares of drugstore chain operators CVS Health (NYSE:CVS) and Walgreens.

The talks are mostly exploratory and any meaningful rollout of stores can take more than a year, according to the news site, citing people familiar with the matter.

Insider also reported there were talks about putting the pharmacies inside of Amazon-owned Whole Foods locations. (https://

An Amazon (NASDAQ:AMZN) spokesperson said the company does not comment on rumor or speculation but added that Amazon Pharmacy is focused on making at-home delivery pharmacy easier and more convenient for customers.

Mizuho analyst Ann Hynes said the sell-off in drugstore company’s shares was overdone as Amazon’s plan to enter the pharmacy business was not new, and adding physical location is likely a natural progression.

“We think Amazon’s roll-out of pharmacies will initially be focused on locations located in Whole Foods stores, similar to the Target (NYSE:TGT) and Walmart (NYSE:WMT) model,” Hynes said.

The e-commerce giant launched an online pharmacy in November for delivering prescription medications in the United States and stirring up competition with drug retailers such as Walgreens Boots Alliance (NASDAQ:WBA), CVS Health and Walmart.

The move was built on its 2018 acquisition of PillPack, which Amazon said would remain separate and cater to customers who need pre-sorted doses of multiple drugs.

The company, founded as an online bookseller, has disrupted multiple industries including retail and technology, and its potential move into the physical pharmacy space will pit it directly against established players.

Shares of Walgreens, CVS and Rite Aid (NYSE:RAD) were all down between 1% and 3% on Wednesday.

CVS declined to comment on the report, while Walgreens and Rite Aid did not immediately respond to Reuters’ requests for comment.

Shares of drug distributors McKesson Corp (NYSE:MCK), Cardinal Health Inc (NYSE:CAH) and AmerisourceBergen (NYSE:ABC) Corp were marginally lower.

Amazon looking at opening pharmacy stores in U.S. – Insider

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.