Financial Analysis Essay

Submitted By prettimirage1
Words: 1635
Pages: 7

CVS and Walgreens are part of the drug store industry. They sell prescription drugs and other products such as over-the-counter medications, health products, food, and other home products. Walgreens and CVS have many stores that draw customers to them because they are able to fill prescription medications for consumers. “The larger drug store chains typically generate about 70 percent of their sales from prescriptions; front-end items account for 30 percent. The number of front-store items has increased in recent years, as stores have started to offer a wider variety of items to customers.”
Walgreens was founded in 1901 by Charles R. Walgreen. It is one of the largest drug retailing chain in the United States. It has about 8300 stores. Their goal was “to be consumers’ first choice for health and daily living across the nation, and a central part of people’s lives and the communities where they live and work.” The Company sells prescription and non-prescription drugs, as well as general merchandises, including household items, convenience and fresh foods, photofinishing and candy.
Walgreens have created new ways for consumers to have a better consumer experience. Walgreens just created an app where customers can scan their prescription bottles and able to refill without coming to the store. 70 % of Americans live within 5 miles of Walgreens that creates a 5.6 Million customers nationwide. In 2002, Walgreens became the first drugstore chain to offer prescription labels in multiple languages chain-wide. In 2011Walgreens President and CEO Greg Wasson joined First Lady Michelle Obama at the White House to announce Walgreens commitment to convert or open at least 1,000 food oasis stores across the country over the next five years, helping to serve people in communities that currently lack access to healthy and affordable foods including fruits and vegetables.
Walgreens is in the Health and Wellness Industry. A consumer can walk to the pharmacy and able to go to the pharmacist to be counseled on health care services. They are able to give Flu Shots that a doctor office would’ve had to do. Walgreens in 2011 expanded its preventive health care services by adding testing for total cholesterol and HDL blood glucose and A1C at more than 1,600 pharmacies in 33 states.
Their pharmacies also provide medication adherence services, counseling and other assistance that help lower medical costs. The health and wellness industry is growing as medical cost increases. As part of the industry, they have created a food section that has fresh fruits, sandwiches and vegetables.
CVS was founded in 1963 by Stanley and Sidney Goldstein and partner Ralph Hoagland. It is the 2nd largest pharmacy chain with more than 7,000 stores. They sell prescription drugs and a wide assortment of general merchandise, including over-the-counter drugs, beauty products and cosmetics, film and photo finishing services, seasonal merchandise, greeting cards and convenience foods through their CVS Pharmacy.
CVS/pharmacy exclusive brands are developed to deliver unique, quality products from beauty to baby care that aren’t available anywhere else. They handle 1 billion prescriptions annually. In 2012 CVS' largest competitor, Walgreen (WAG), had a contractual dispute with Express Scripts (ESRX), which lasted for a good part of the year but was eventually resolved. During the dispute, Walgreen's rivals like Rite Aid (RAD) and CVS scooped up a large portion of its customers, some of whom may never return to Walgreen.

Walgreens is one of the biggest health and wellness retail pharmacy stores that are growing rapidly. It is looking to grow 1.5 to 2.5 percent 2013. Their objectives are to have affordable consumer’s items. They have included fresh foods at a numerous locations. They are moving in the right director. They have just obtained 2 other companies: BioScript’s Inc. and Duane Reade. BioScript Inc is a pharmacy company that has 30 locations in 16 states.…