Have you ever noticed that many stores of the same type often occupy the same location?
On the face of things, this practice would seem like a bad idea. It is more likely to increase competition and divide the number of customers between the stores. A common example of this is CVS and Walgreens. These are two of the largest drug store chains in the United States, and each boasts thousands of branches.
If you are wondering, ‘why are CVS and Walgreens always together?’ then it’s time to find out…
- Hotelling’s Law In Business
- The Nash Equilibrium
- Why Are CVS And Walgreens Always Together? – Ownership
- The Best CVS Products
- The Best Walgreens Products
- Job Opportunities At CVS And Walgreens!
- Why Are CVS And Walgreens Always Together? – Final Thoughts
Hotelling’s Law In Business
Hotelling’s Model of Spatial Competition perfectly explains why businesses of the same type tend to be found near each other. More commonly known as Hotelling’s law, it is taught to business students as an important business practice. The law states that if businesses selling similar products are located nearby, they gain the maximum possible market share.
This is because people who are looking for certain products or services want to be able to enjoy the choice. If they do not find the variety or prices they need in one store, they can easily visit another one. This saves them from having to travel across town to find what they need.
Now, it makes sense!
This law was introduced by Harold Hotelling, and it has become an important business model for companies. This is one of the main reasons that stores selling the same types of goods can be found within particular areas. In major cities, it is even possible to find dozens of similar stores on certain streets.
The Nash Equilibrium
This theory refers to the fact that different companies rely on each other not to change their strategy. These days, most people are used to seeing the two pharmacy retailers situated near to each other. If either company decided to change its tactic, both companies would probably lose out.
For the same reason, both companies tend to offer the same opening hours and other strategies. However, there is still room within this plan for each company to offer different deals and discounts. This helps to enjoy that customers always have a reason for coming back and checking out the different options.
Why Are CVS And Walgreens Always Together? – Ownership
Because these two retail chains are always seen in the same location, you may believe they have the same owners. However, the two companies have different owners and mission statements. Let’s take a closer look at the key factors of each of these major companies.
Owned by Walgreens Boots Alliance, this pharmacy store chain was established in 1901 in the city of Chicago. The company has a reported net income of $677 million and boasts more than 18,750 stores. Around half of those stores are located internationally.
This company is a subsidiary of CVS Health and was founded in 1963 in the city of Lowell, Massachusetts. The company has a reported net income of $1.5 billion and boasts more than 9,900 stores in the United States.
The Best CVS Products
Even though the two companies are located next to each other, there are reasons customers choose one over the other. This pharmacy chain is best known for its range of skincare products. Let’s take a closer look at some of CVS’s most popular products.
Beauty 360 Citrus Lemon & Charcoal Sheet Mask
These sheet masks are very easy to use and are one of the company’s best-selling products. They feature charcoal to detoxify the skin and remove dirt from the pores, while the lemon brightens and firms. Because this product is so popular, the company regularly offers deals and discounts to attract skincare lovers to the store.
Beauty 360 Exfoliating Facial Scrub
This facial scrub is designed to remove dead skin as well as oil and dirt. After use, the skin is left feeling fresher and smoother. Shoppers are often offered a deal on this product, especially when it is bought with other skincare products.
Duke Cannon Best Damn Beard Oil
This is one of the company’s most popular products among male shoppers. The product boasts a range of natural ingredients to make beard hair softer and more manageable. It is also enriched with vitamin E, carotenes, and antioxidants, which soothe the skin and alleviate skin conditions like acne.
The Best Walgreens Products
While this company also offers skincare products, it is better known for its deals on makeup and hair care products. Smart shoppers can scoop up some great deals if they know where to look. Here are some of the company’s best-selling products.
Maybelline The Nudes Eyeshadow Palette
This special eye shadow palette boasts a range of different shades in different tones. It is a popular product among customers of different ages and from all walks of life. Because this is one of the company’s best-selling products, customers can often find attractive deals and discounts on it.
Rimmel Lasting Finish Lipstick
The company often features Rimmel products in its marketing campaigns, and there are special deals for shoppers to increase loyalty. The lipstick boasts a special balance of pigmented colors that are designed to last all day. While it has impressive staying power, the lipstick makes the lips softer and comes in a wide range of shades.
SheaMoisture Jamaican Black Castor Oil Reparative Leave-In Conditioner
This popular conditioner is often sold as a deal with a similar shampoo to attract customers. The conditioner contains Jamaican black castor oil to soothe and revitalize brittle and damaged hair. It is designed to replenish moisture in the hair and make it softer and stronger.
Job Opportunities At CVS And Walgreens!
Let’s begin with some pharmacy opportunities, so check out our guides to the CVS Pharmacy Application, and depending on your age, you might want to know Can Teens Work at CVS, or why not choose from the Longs Drugs Application, the Shoppers Drug Mart Application, and the Smiths Food And Drug Application, and finally, check out Does CVS Run Background Checks, if you have a criminal record before applying!
There are various positions available in a pharmacy. So, to help you decide which one would suit you best, take a look at our Pharmacist Job Description and most common Pharmacist Interview Questions, or how about my Pharmacy Technician Job Description, my Pharmacy Manager Job Description, and even the Top Highest Paying Medical Jobs in case you’re curious.
Retail is fun to work in, so check out our guide to the Walgreens Application, as well as the most frequently asked Walgreens Interview Questions and Walgreens Customer Service Associate Interview Questions. And once again, please check Does Walgreens Run Background Checks before moving forward.
Why Are CVS And Walgreens Always Together? – Final Thoughts
When it comes to business, you can be sure that major corporations know what they’re doing. All large companies employ business analysts to guide them to the best business decisions. These companies also invest heavily in research and development to help them stay on top.
Therefore, you can be sure that being located near each other benefits both CVS and Walgreens. Smart shoppers can also take advantage of the proximity to save money on their shopping bills. If you know which items are cheaper in each store, you can visit them both and enjoy some great deals.
Enjoy shopping at CVS or Walgreens!