Wendy future of retail top

Answers for five crucial industry questions

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Now that all the seers, soothsayers and pundits have weighed in with their predictions and forecasts for 2022, many claiming infallibility, it’s our turn. But rather than tell you, with total certainty, how things will turn out, we’ll raise five key industry questions — and, of course, provide the answers.

• Will the National Association of Chain Drug Stores hold its 2022 Annual Meeting, currently scheduled for Palm Beach, Fla., in late April?

Answer: Without a doubt. Clearly, too much time has elapsed since the last in-person Annual Meeting. In reconvening its Regional Chain Conference last month, NACDS was again reminded of the critical role the association plays in industry events and affairs. Canceling the Annual Meeting at this late date is not only unwise, it is unthinkable. Register now — if not sooner.

• How faithfully will CVS honor its commitment to permanently close nearly 1,000 stores over the next three years while developing or honing several new prototype store models?

Answer: We’re not sure. CVS, of late, has become a difficult retailer to reach or predict. The drug chain is awash with new faces, new thinking, new directions and a new focus on health care. It is no longer the drug chain many of us grew up with. But is it the health care facility it wants to become? We’re hoping the answer is yes and the new leadership will determinedly stick to its game plan and emerge, in 2025, a stronger and more formidable retailer than it has previously been. Against that background, our answer, amid hopes and prayers, is Yes.

• What will the new Walgreens look like?

Answer: Here again, that’s hard to predict. The currently stated intention out of Deerfield is to divorce itself from the England-based Boots drug chain it relatively recently acquired. If that plan is sincere and successful, a new question arises: What then? The belief here, as it has long been, is that Walgreens is among the very best U.S. retailers. Whatever directions the drug chain takes going forward, our belief in the retailer’s strengths remains unshaken. Therefore, we believe that, going forward, Walgreens will, in three years, emerge stronger and more formidable than ever.

• How real is Rite Aid’s return to normalcy?

Answer: Very real. Virtually unnoticed in the crowded chain drug community, Rite Aid has remodeled itself and remade its image to the point where it is virtually equal to the best U.S. drug retailers. We believe that this metamorphosis will gain momentum in the new year and, come 2023, Rite Aid will once again be worthy of inclusion in the Big Three.

• What future is in store for America’s regional drug chains?

Answer: A particularly bright one. Here again, virtually unnoticed, the nation’s smaller drug retailers have stepped up in a volatile industry climate to provide U.S. consumers with the goods and services that have become of paramount importance in these uncertain and dangerous times. In other words, the corner drug store has returned, disguised as the local or regional drug chain. Indeed, it is the smaller drug chains that have become especially adept at recognizing and responding to the needs of today’s U.S. consumer. There is every reason to believe that this emergence will gather momentum and expertise as the months of 2022 unfold. In short, bet on the regionals.


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