Are Walgreens and CVS Owned by the Same Company?
Hi there! As an expert in home upgrades and repairs, I often get questions about popular pharmacy chains like Walgreens and CVS. I totally get why there‘s confusion – with so many locations across the country, it seems like they could be under the same ownership. However, I can confirm that Walgreens and CVS are separate companies with different parent organizations. Let me break it down for you with some handy facts and comparisons!
The Parent Companies
First, it helps to understand who owns these pharmacy giants.
CVS Health is the parent company of CVS Pharmacy. You may also see it referred to as CVS Caremark Corporation. CVS Health operates over 9,800 retail pharmacies across 49 states, Washington DC and Puerto Rico. It brought in an impressive $292 billion in total 2021 revenue!
Meanwhile, Walgreens falls under the Walgreens Boots Alliance company banner. Walgreens merged fully with Alliance Boots back in 2014 to form this new entity. Together, they manage over 13,000 pharmacy locations scattered across 11 countries. In 2021, Walgreens Boots Alliance posted $132 billion in revenues.
So while they‘re both major players, CVS Health takes the lead in sales and store count within the United States.
Locating Near Each Other
Now you‘re probably wondering – why do I often see a CVS right across from a Walgreens? It comes down to strategy and convenience.
You see, both chains purposefully open new locations in close proximity. This saturation provides pharmacy access to more neighborhoods and shopping centers. Consumers benefit from the ease of having two major pharmacies so close together.
In 2021, CVS held nearly 25% of the total U.S. pharmacy market share. Walgreens followed closely behind with approximately 20% market share. Being so conveniently located near each other increases foot traffic to both stores.
It also sparks competition! The pharmacy chains boost promotions to attract customers when a rival store is nearby. Even with another major brand just down the block, CVS and Walgreens ultimately see the neighborhood saturation as beneficial.
Services Offered
When you walk into a CVS or Walgreens, you‘ll notice they both offer pharmacy services like:
- Prescription dispensing
- Immunizations and vaccines
- Medication compounding
- Online and mobile refills
However, CVS has expanded into more healthcare services in recent years:
- MinuteClinics provide walk-in care, physicals, screening, and vaccinations.
- HealthHUB locations offer nutrition counseling, sleep apnea equipment, and more.
- Owning Aetna provides health insurance plans.
- CVS Caremark handles pharmacy benefits management.
Comparatively, Walgreens focuses primarily on retail pharmacy. While some locations house healthcare clinics, Walgreens has stayed true to its pharmacy roots. You can still shop beauty items, snacks, seasonal goods and more at Walgreens alongside your prescriptions.
Recent Mergers and Acquisitions
Both pharmacy brands have made major moves to grow in size and scale:
- CVS acquired Aetna, a health insurance company, for a whopping $69 billion in 2018.
- Walgreens merged fully with Alliance Boots of the UK and Switzerland in 2014.
- CVS purchased pharmacy benefits manager Caremark in 2007.
- Walgreens picked up select Rite Aid and Duane Reade pharmacy locations starting in 2011.
These consolidations have helped the pharmacies expand their footprints and capabilities. For CVS, bringing Aetna into the fold was a big shift into the health insurance domain. Walgreens, on the other hand, focused on growing its international presence.
By the Numbers
Let‘s look at some key metrics and financials between the pharmacy giants:
| CVS | Walgreens |
| 70,000 employees | 354,000 employees |
| 9,900 US pharmacy locations | 9,021 US locations |
| $292 billion revenue (2021) | $132 billion revenue (2021) |
| Approx. 25% US pharmacy market share | Approx. 20% US pharmacy market share |
As you can see, CVS maintains a lead in US store count and sales. However, Walgreens has a significantly larger employee roster due to its international scope.
The History
Curious about how these pharmacy giants grew? Let‘s stroll down memory lane!
CVS Pharmacy
- 1963 – Founded in Lowell, MA by the Goldstein brothers
- 1967 – Began selling prescriptions alongside health products
- 1996 – Acquired Revco, gaining over 2,500 locations
- 2006 – Purchased MinuteClinic, entering retail clinics
- 2007 – Merged with Caremark to form CVS Caremark
- 2014 – Rebranded as CVS Health
- 2018 – Acquired Aetna health insurance for $69 billion
Walgreens
- 1901 – Charles R. Walgreen Sr. bought his first Chicago pharmacy
- 1916 – Grew to 20 stores
- 1975 – Topped 1,000 locations
- 1986 – Entered Mexico with its 3,000th store
- 2006 – Acquired Happy Harry‘s chain and expanded to the Midwest
- 2012 – Took 45% stake in Europe‘s Alliance Boots
- 2014 – Fully merged with Alliance Boots to form Walgreens Boots Alliance
As you can see, both have rich histories and took similar paths to major growth through acquisitions and mergers.
The Bottom Line
While Walgreens and CVS compete for pharmacy customers and offer similar services, they operate as independent enterprises under different parent companies. CVS Health maintains a slight edge in US pharmacy market share and retail locations. But Walgreens Boots Alliance bests CVS in worldwide reach.
Strategically placing stores right near each other benefits both chains in visibility and foot traffic. And it gives communities convenient access to affordable prescriptions and other health services.
So next time you spot a Walgreens across from CVS, you‘ll know it was no coincidence! Just two pharmacy titans looking to provide easy access to medications and boost their bottom lines.
Let me know if you have any other pharmacy or retail questions! Happy to lend my home improvement expertise to shed light on popular chains.
