Why are CVS and Walgreens stores always close to each other? | TigerDroppings.com

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robce22
New Orleans Saints Fan
Member since Jun 2009
205 posts

Why are CVS and Walgreens stores always close to each other?


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Bob Sacamano
Tulane Fan
Houston
Member since Oct 2008
2155 posts

re: Why are CVS and Walgreens stores always close to each other?


Same reason many Home Depot's are close to Lowe's.





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Golfer
LSU Fan
Coral Bay, St. John, USVI
Member since Nov 2005
56855 posts
 Online 

re: Why are CVS and Walgreens stores always close to each other?


1. GIS data identifies that location as the most ideal for that retail idenity.

2. Prevalent marketing theory: consumer identifies a location as being where a certain type of store is (pharmacy, hotels, grocery) and will simply pick one at random each time. Essentially it supersedes brand loyalty.






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robce22
New Orleans Saints Fan
Member since Jun 2009
205 posts

re: Why are CVS and Walgreens stores always close to each other?


Thanks!


This post was edited on 11/3 at 6:44 pm


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Golfer
LSU Fan
Coral Bay, St. John, USVI
Member since Nov 2005
56855 posts
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re: Why are CVS and Walgreens stores always close to each other?


quote:

What is the thinking behind this business model?


See above.

The American consumer is driven by convenience. So say you walk into Home Depot and they are out of your item and the clerk notes it will be restocked tomorrow.

You don't wait for it, you drive 1/2 mile down the road to Lowes and get it.






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1p56
Thats da admin who banned my avatar
Member since Aug 2010
1751 posts

re: Why are CVS and Walgreens stores always close to each other?


Walgreens spends all kinds of boatloads of the money and time doing market research and realestate diligence.

CVS just plops down next door.

CVS FTW.



This post was edited on 11/3 at 9:03 pm


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LSUDad
LSU Fan
Still on the move
Member since May 2004
55556 posts

re: Why are CVS and Walgreens stores always close to each other?


Burger King and Mc's in the same area, same thing.





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ScoopAndScore
baton rouge
Member since Oct 2008
7768 posts

re: Why are CVS and Walgreens stores always close to each other?


Same reason McD and BK are close, Popeyes and Church's, etc etc. Competition and customer overflow.





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kfizzle85
LSU Fan
en oh, el ay
Member since Dec 2005
21000 posts

re: Why are CVS and Walgreens stores always close to each other?


quote:

convenience


Pretty much priority #1 in virtually every decision I make. Time value of life is infinitely more powerful (over me) than the time value of money.






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wickowick
LSU Fan
Head of Island
Member since Dec 2006
23210 posts
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re: Why are CVS and Walgreens stores always close to each other?


If I remember correctly from marketing, the fast food joints, and restaurants in general benefit from being grouped together instead of standing alone. The thinking is that it becomes a destination location when multiple items or choices can be found and people will travel to eat there. Therefore the individual stores benefit from having competition.





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Chad504boy
New Orleans Saints Fan
Five Oh Four
Member since Feb 2005
80240 posts

re: Why are CVS and Walgreens stores always close to each other?


Same reason why you have gas stations both next door and across the street.





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deuceiswild
LSU Fan
South La
Member since Nov 2007
3018 posts

re: Why are CVS and Walgreens stores always close to each other?


quote:

Same reason many Home Depot's are close to Lowe's.


This is true in many cases, but you'll find it even more true when you compare Lowes to Wal Mart.






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kbro
New Orleans Saints Fan
North Carolina, via NOLA
Member since Jan 2007
3906 posts

re: Why are CVS and Walgreens stores always close to each other?


quote:

Why are CVS and Walgreens stores always close to each other?


Same reason all the hookers are on Decatur St.






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LSUAfro
LSU Fan
Baton Rouge
Member since Aug 2005
10359 posts
 Online 

re: Why are CVS and Walgreens stores always close to each other?


quote:

Same reason all the hookers are on Decatur St.


I didn't understand before, but I do now. I do Now.






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DieSmilen
Southeastern LA Fan
My Rubbermaid Desk
Member since Dec 2007
1277 posts

re: Why are CVS and Walgreens stores always close to each other?


I remember reading an article back in 2001 that talked about how much money McDonalds spends on research before they open a store. The article quoted some big wig at Burger King who said something on the lines of "we don't spend any money researching store locations, we figure if it's good enough for McDonalds it's good enough for us.





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Paul Allen
USA Fan
Baton Rouge, LA
Member since Nov 2007
29293 posts

re: Why are CVS and Walgreens stores always close to each other?


McDonalds is a real estate company that happens to sell hamburgers.








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