Walgreens closures and the retail pharmacy landscape

...what does it all mean?

July 09, 2024

Hey Health Techies!

It’s a weird time to be in pharmacy. And I say that as a pharmacist who has seen a lot.

It seems like every other day I’m telling my husband about some new thing that’s happening in the industry and he looks at me confused because it conflicts with some other thing I just said a week ago. Yes, a lot is happening in pharmacyland right now and it is confusing to say the least.

Now, if you’re not in pharmacy, I think it’s still worth sticking around as I spill the tea ☕️ because this impacts the broader healthcare landscape too. We’re all in this together, and the ripple effect that one arm of healthcare can have on another is astounding.

💊 Walgreens is closing up to 25% of its stores

Ok that makes sense you may say. Stores have been struggling for awhile now to staff pharmacists. I’ve seen all “pharmacy closed” and “help wanted” signs. There must be a shortage of pharmacists.

But wait…

🧑🏻‍⚕️ The number of pharmacists is actually up

According to reports, the number of pharmacists has been steadily increasing. Check out this graph from Statista.

This graph definitely fits some themes I remember about my own journey into pharmacy. I entered my doctor of pharmacy program in 2007 after hearing much buzz that there was a pharmacist shortage. Understandable seeing that scary downward trend from 2001 to 2003. Pharmacists were going to be in demand!

So what was done about it?

🏫 The number of pharmacist schools exploded over the past two decades

We pumped out a massive number of pharmacists, diversified their responsibilies, created residency programs, and elevated their clinical skillset. We expanded the role of a pharmacist and invited them to vaccinate and in some cases even prescribe.

Wow! Ok so with that type of growth, the number of applicants must be through the roof right? People must just be clamoring for this job.

✍🏼 Enrollments down

Well actually, schools have been looking high and low for ways to increase enrollment rates by eliminating barriers to admission.

In fact, the entrance exam for pharmacy school also known as the Pharmacy College Admissions Test (PCAT) has been discontinued as of January 2024. Like even if a school wanted to require it for admission, they can’t. The test is no longer offered at all.

💰Pay trends

Ok, but at least we’re paying pharmacists more right? Their clinical role has been elevated and it sounds like we’re entering a shortage.

Oh no, actually pay in the retail sector has gone down.

Huh? Even with the “Help Wanted” signs and the increased responsibilities?

💻 Thank goodness tech has stepped in?

It’s a bit of a chicken and the egg thing. Did online pharmacies kill brick and mortar stores? Or are we just lucky that they’re around to serve rural areas now that traditional retail stores are closing due to their own poor business models?

It’s honestly hard to tell. I have a hard time believing that online pharmacies are the cause despite working in that sector for 7 years. The overall adoption just isn’t there yet.

What I can say is that tech will help regardless. Online pharmacies will help serve patients that now find themselves in a pharmacy desert due store closures and software and robots will help those pharmacists still working in understaffed stores, by continuing to improve automation and efficiency efforts.

But until that happens? Pharmacists are getting paid less to do more and with the enrollment trends that we’re seeing, there is no end in sight. This same thing could happen in other specialties too. An imbalance of supply and demand causes massive disruption in our healthcare system. And when the shortage in one area shows up, others are expected to bear the extra responsibility.

Hit reply if you can make sense of things because I certainly haven’t yet. But I think what all healthcare providers can learn from this is that things can change on a dime. Yes, you went to school for a stable career. But the healthcare industry isn’t as stable as we’d like. While that can be good (instability can breed change and improvement), it can also mean that your career plans might need to change with it.

And if you’re a pharmacist impacted by the recent closures, please reach out if you’re feeling discouraged. Yes, another big chain will gladly take you, but if you’re interested in something nontraditional, that happens to be my jam.

📰 Weekly Wrap-up

👀 Don’t miss these open roles

Until next time,

Lauren