The chief executive of Walgreens Boots Alliance, Stefano Pessina, has told the World Retail Congress that he believes Amazon’s entry into the pharmacy sector is unlikely, due to the level of regulation therein.
“I think it would take many years for them to enter the pharmacy market,” Pessina told the audience at the Congress, held in Madrid, which concluded yesterday.
“I have a lot of respect for Amazon, and a lot of respect for Jeff Bezos, but I believe it will not enter a market that is as regulated as this one.
"Amazon recently took the decision not to sell alcoholic beverages, because of regulation in that sector, so what about drugs?”
Amazon Entry
Last summer, Amazon launched a range of over-the-counter medicines as part of its growing private label range. The Basic Care line, which included ibuprofen, allergy medicines, and a number of other OTC products was developed in conjunction with Perrigo, a Dublin-based firm.
It followed this up with the announcement in January that it was entering the health insurance business.
However, in the past few days, the online giant appeared to back away from its entry into the pharmaceutical space, with CNBC reporting that plans to increase its presence there were on hold. Shares in Walgreens, along with fellow pharmacy chain Rite Aid, spiked as a result.
Proximity
Pessina said that the pharmacy industry, which is built on “proximity to consumers and their families” offers a huge amount of potential for growth, but he acknowledged that the business has to change.
He said that the business was launching a new format for Walgreens in Florida, which will be “more focused on the needs of our customers”, and adaptable to change.
“You have to be ready to change, change and change again,” he explained.
© 2018 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. Click subscribe to sign up to ESM: The European Supermarket Magazine
