Wal-Mart plans pharmacy role expansion

The consolidation of the pharmacy sector in the USA, as major retailers continue to compete with low-cost generic prescription drugs (Marketletters passim), is likely to take a new turn, as Wal-Mart, for instance, explores the creation of smaller stores offering health and wellness products. According to health economist Jane Sarasohn-Kahn, founder of the THINK-Health consultancy, the world's biggest retailer could be planning to leverage its information technology expertise to "get involved in chronic [disease] management with real teeth."

Four retail chains: Walgreen; CVS Caremark; Rite-Aid and Wal-Mart each own between 4,000 and 7,000 pharmacy stores, the Financial Times reports. CVS has announced the take over of the Longs Drugs chain in a $2.5-billion deal which expands the former into California, where market leader Walgreen has historically been dominant.