How Important Are Pharmacists in Getting Consumers to Use Traditional Drugstores?

In the past decade, the U.S. has seen a dramatic decline in the number of drugstores, with nearly 30% of them disappearing from the retail landscape. This shrinking footprint reflects a combination of factors, including the rise of eCommerce, changing consumer habits, razor-thin profit margins and a more competitive environment dominated by big-box retailers and online pharmacies.

While the traditional drugstore model once thrived as a convenient stop for medications and over-the-counter products, evolving market dynamics have placed immense pressure on these businesses, forcing many to close their doors. To survive, retail experts interviewed by PYMNTS say drugstores must adapt by diversifying their services, leveraging technology, and finding new ways to meet changing consumer needs — whether through wellness services, telehealth, or a stronger online presence.

These challenges, however, extend beyond market competition, according to Don Roy, professor of marketing at the Jones College of Business at Middle Tennessee State University.

Shortage of Pharmacists

“A critical issue is the ongoing shortage of pharmacists,” Roy said. “According to the U.S. Bureau of Labor Statistics, there will be about 13,400 job openings for pharmacists every year over the next decade. At the same time, the number of pharmacy school graduates is decreasing, down from almost 15,000 in 2018-2019 to less than 13,000 in 2022-2023.

“This trend has impacted the well-being of pharmacists on the job, with one study finding nearly 90% of pharmacists are at risk of burnout. The impact of these trends is that it is more challenging to staff brick-and-mortar locations to meet promised service levels.”

At the same time, Roy noted changing consumer expectations favor pharmacies offering convenience and competitive pricing.

“These trends favor big-box retailers with in-house pharmacies and online pharmacies more than traditional retail pharmacies,” he explained. “Additionally, retail pharmacies are cutting costs by closing stores in low-income and high-crime areas, citing unprofitability and safety concerns. These closures reduce access to essential healthcare services for vulnerable populations, tarnishing the industry’s image.”

To improve the situation, Roy believes the “rightsizing” of chain retail pharmacies will continue, adding “a resulting opportunity could arise for entrepreneurial-minded pharmacists who identify underserved markets and open independent retail pharmacies.”

Drugstores Into Healthcare Hubs

In an interview with PYMNTS, Zachary Robichaud, instructor, School of Retail Management, Ted Rogers School of Management, Toronto Metropolitan University, said drugstores must position themselves as more than just places to fill prescriptions, but as integral parts of the healthcare experience.

“This includes expanding services like wellness clinics, vaccinations and telehealth, positioning drugstores as healthcare hubs,” Robichaud explained. “Leveraging technology to offer app-based prescription management, home delivery services, and virtual consultations can further enhance convenience.

“Additionally, drugstores should broaden their retail selection beyond prescriptions to include wellness, beauty and lifestyle products, creating a more comprehensive shopping experience that can better compete with the likes of Walmart and Target.”

Changing Consumer Trends

Sudip Mazumder, SVP, retail industry lead, North America, at digital consultancy Publicis Sapient, expanded on the challenges faced by traditional drugstores.

“The decline of traditional brick-and-mortar drugstores can largely be attributed to the rise of eCommerce, a shift in consumer behavior, and financial pressures within the industry,” he told PYMNTS.

“Online pharmacies have gained popularity due to their convenience, offering 24/7 access and home delivery, often at lower prices, especially for generic medications. As health-conscious consumers become increasingly proactive about their health, opting for preventative care and healthier lifestyles, the demand for traditional over-the-counter meds is affected.”

Mazumder pointed to an aging population that trends toward mail-order services for prescriptions, reducing foot traffic to physical stores.

“Drugstores also face shrinking reimbursement for prescriptions, rising costs, and evolving customer shopping habits, which have forced many chains to close money-losing stores and transfer prescription files to more profitable locations,” he said.

“This scenario is exacerbated by competitive pressures from big-box retailers and grocery chains, which have expanded their pharmacy services to include competitive pricing and popular, convenient locations.”

To stay competitive, Mazumder said traditional drugstores must reinvent themselves by enhancing the customer experience, expanding their services, and leveraging technology.

“Offering personalized services, such as consultations, loyalty programs, and an improved in-store experience can help attract and retain customers,” he explained. “Expanding into beauty and wellness products or providing additional services like vaccinations and telehealth consultations could draw a wider customer base.

“Strategic partnerships with healthcare providers for convenient prescription refill and delivery services can also be beneficial. Investment in eCommerce platforms and developing user-friendly mobile apps are essential for competing with online pharmacies. By focusing on value-added services such as medication adherence counseling or personalized health plans, drugstores can adapt to changing consumer needs and maintain their relevance.”

Pharmacies Struggle in Changing Market

To regain relevance, pharmacies must pivot to a more diversified service offering, according to Greg Zakowicz, senior eCommerce expert at Omnisend.

“To put it bluntly, pharmacies as we know them are an outdated business model,” he told PYMNTS. “They lack differentiation from competitors like grocery stores, online pharmacies, mail-order services, and convenience stores. Beyond specific, one-off needs like filling prescriptions and seasonal vaccines, there’s no need to go to a pharmacy. That’s not good.”

Most grocers have pharmacies inside their storefronts, providing convenience for shoppers looking to consolidate errands, Zakowicz said, and more consumers are opting for mail-order prescription fulfillment.

“Typical pharmacy product categories, like makeup, can be found anywhere, including delivered to your doorstep,” he added. “And the attempt to expand product offerings, such as with grocery essentials, finds stores stocked with the same shelf-stable products as many gas stations and convenience stores.”

What can drugstores in the U.S. do to head in the right direction?

“I am honestly not sure how they can reverse course, but it will likely take multiple initiatives to reinvent the model,” Zakowicz said.

“I expect to see a reduction in suburban locations in favor of major metropolitan centers, where the store can serve as a functioning convenience store, but that won’t be enough. With an aging population, maybe its reinvention could center around providing services to that demographic. What that is, I have no idea.”