Americans xhave relied on local pharmacies, in some form, since the country’s founding. Massive expansion has made it difficult for these stores to ensure they are available to all Americans, no matter where they live.
The First Pharmacy Opened in Philadelphia in 1729
The oldest known apothecary (the forerunner of modern pharmacies) dates back to 1221 in Florence, Italy, and Christopher Marshall opened the first apothecary in the United States in 1729 in Philadelphia, Pennsylvania.
For Centuries, Areas Were Served by Local Stores
People could visit apothecaries in their towns for all kinds of medical ailments, and these stores slowly evolved into what we see today. It was important for any small town to have a nearby pharmacy for people to access their medication.
Serving Their Community in More Ways Than One
It wasn’t just medication that these pharmacies dispensed to the people in their towns, they also offered various items. People would also visit their pharmacies for candy, household items, and knick-knacks. Many pharmacies even had soda fountains where people could order ice cream floats.
Walgreens Was Founded in 1901
Walgreens has been a major chain in the United States for decades, as the first store was opened in 1901 in Chicago, Illinois by Charles Rudolph Walgreen. A big part of the company’s rise to prominence was prohibition. While liquor had become illegal nationally, people could go to pharmacies for prescription whiskey.
CVS Was Founded in Massachusetts in 1963
CVS, which stands for Consumer Value Stores, is the second biggest chain of pharmacies in America. Founded in Lowell, Massachusetts in 1963, CVS is now headquartered in Woonsocket, Rhode Island. Many early CVS stores did not originally have pharmacies, but now it is rare to find a store without one.
CVS and Walgreens Began to Expand
While Walgreens focused on expanding in the Midwest, CVS focused on expanding in the New England area. That began to change in the 1970s and 1980s as CVS and Walgreens began to buy up competing pharmacies at tremendous rates.
Local Pharmacies Are Badly Hurting
Local pharmacies have always been challenged by larger retailers that had advantages they just could not match. But things have become especially bad in the 2020s. In 2023, it was reported that an average of one local American pharmacy is closing each day.
CVS is Rapidly Closing Down Stores
CVS is closing down stores at an alarming rate. The chain reportedly closed more than 900 stores between the years of 2022 and 2024. The brand also plans on closing down an additional 270 locations in 2025. CVS said that it is reconsidering the way that it approaches the retail market.
Walgreens is Also Struggling
In many rural areas, local pharmacies had to close their doors when larger retailers came to town. But now they are getting rid of those locations as well. Walgreens has announced plans to close down 1,200 of their stores by 2027. 500 of those locations will be gone by the end of the 2025 fiscal year.
Target and Walmart Are Trying to Fill the Gap
While many rural and urban areas have lost their local pharmacy or CVS, most still have a Walmart or Target store. Thanks to many of these stores having their own built in pharmacy, they have been able to fill some gaps. Not all of these retailers have a pharmacy inside.
An Estimated 48 Million Americans Live in a Pharmacy Desert
The problem of pharmacy deserts has never been worse. GoodRX, a healthcare company, tracks information about pharmacies across the country. According to GoodRX, around 1 in 7 Americans currently live in a pharmacy desert.
Many of These Areas Don’t Have Easy Hospital Access
An estimated 190 hospitals have closed since 2005, most of which are in rural areas. Many of the people in these areas have been forced to drive long distances for medical care. With several rural hospitals struggling to survive, this trend could continue.
Black and Latino Areas are Disproportionately Affected
Thanks to historical segregation, Black and Latino communities have always been underserved. The gap has widened in recent years as bigger chains are more likely to shut down these stores when they announce mass clothing.
There Are Many Reasons for Pharmacy Deserts
Finding the reason for the pharmacy shortage isn’t necessarily easy as a number of different factors are driving the problem. While the role of insurers is a major factor, it is not the sole issue affecting pharmacy closures.
COVID-19 Played a Role
As was the case with many independent businesses, the COVID-19 pandemic was a major problem. While there were loans available for some businesses, that wasn’t the case for all of them. Some pharmacies were able to make it through the pandemic thanks to increased business or loans, that was not the case with all of them.
Insurers Have Driven Prices Down
The insurance companies in the United States have run with very little government intervention for years. And while some efforts have been made to reduce the cost of medication in the country, the pharmacists have been the ones hurt. Insurance companies are paying less and less towards major prescription drugs and hurting the bottom line of those who sell them.
Uncertain Profit Margins
Because of the lack of regulation when it comes to insurance companies, many small pharmacies don’t know how much profit they make off a sale until after the fact. Some have described it as a lottery-type system where you make more than expected, but in many cases, they may lose money.
Efforts to Gain Higher Profit Margins
In rare cases, it has been reported that some pharmacists have gamed the system by working with doctors to ensure that they only prescribe the drugs with the highest profit margins. While this has been reported to happen in the US, most pharmacists do choose to run their businesses in an ethical manner.
Local Pharmacies Know Their Customers Best
Those people who do have access to local pharmacies consider themselves lucky as these community spots can give the kind of personalized services that bigger retailers can’t match Unfortunately, they are struggling to survive.
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