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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What is the thinking behind this business model?

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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.

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

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

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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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Same reason all the hookers are on Decatur St.

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