In the not-so-distant past, the corner drugstore was a beacon of convenience in American neighborhoods. It was the go-to spot for everything from filling prescriptions to grabbing a quick snack or restocking household essentials. However, recent years have seen a dramatic shift in the landscape of retail pharmacy, with major chains facing significant challenges. At ChangeUp, we believe that the root of this decline lies in drugstores’ gradual abandonment of convenience – the very foundation upon which their success was built.

The Convenience Conundrum

Ten years ago, drugstores were ranked second highest in terms of convenience among all retail channels. This focus on accessibility and ease allowed them to command slightly higher prices, as consumers were willing to pay a premium for the time saved and reduced hassle. However, the convenience landscape has shifted dramatically in the past decade.

E-commerce giants like Amazon and grocery delivery services such as Instacart now offer super-fast delivery, often within hours. Additionally, dollar stores have proliferated in rural areas, providing a nearby option where drugstores were once the only choice.

This shift has undermined what was once the primary point of differentiation for drugstores in the retail space. As a result, their relevance and appeal to consumers have diminished, leading to a loss of market share and the closure of numerous stores.

Redefining Convenience Requires Bold Moves

The industry is struggling to maintain relevance in a rapidly changing retail landscape. Yet what we see in the industry is more of the same – a failure to fundamentally reexamine the “main & main” location strategy with the same box.

There isn’t just one avenue in the fight for relevance. Drugstores must rethink how they come to market and be flexible in having more than just one format. Just as there are varying customer needs, there must be varying experiences.

At ChangeUp, we believe that one of the ways to invigorate the drugstore industry lies in returning to its roots: convenience. However, this doesn’t mean simply reverting to old models. Instead, we propose a revolutionary concept that could transform the drugstore experience and reclaim its position as the ultimate convenience destination.

Imagine a drive-thru only concept that supercharges the throughput of a typical drugstore location. This innovative design features a two-story structure enabling multiple lanes and pick-up points, dramatically reducing transaction times. Customers could place mobile orders not just for pharmacy products, but for a wide range of household and convenience items typically only available to walk-in customers.

By leveraging automation, robotics, and order-ahead technology, this concept would offer unprecedented efficiency and accuracy. Geofencing technology would activate a proprietary pick-and-pack system, setting logistical processes in motion as soon as a customer approaches. Upon arrival at the drive-thru, a combination of robots, conveyor systems, and human staff would retrieve, verify, and deliver items directly to the customer’s car – often in less than five minutes.

This direct-to-car shopping model would not only redefine convenience but also address key business challenges. It would significantly reduce shrink, a persistent issue in retail pharmacy. Moreover, by providing a seamless, technology-driven experience akin to the best quick-service restaurants, drugstores could once again set new standards for customer expectations.

The Future Could Be Bright

The decline of drugstore chains in the United States is a complex issue, but at its core, this struggle can be traced back to the abandonment of convenience – the very principle that once made these stores indispensable to their communities. By embracing innovative concepts that reimagine convenience for the modern consumer, drugstores can reclaim their position as pillars of accessibility in American retail. The future of the corner drugstore depends on its ability to adapt, innovate, and once again become the most convenient option for shoppers in an increasingly competitive marketplace.