Yesterday’s rumor that Amazon is considering opening 3,000 Go stores in the next three years sent shockwaves through the grocery and retail markets. Certainly, were Amazon to invest the billions of dollars needed to build out such a physical footprint needed to reach that scale, it would likely pose significant challenges for incumbent retailers, quick-serve restaurants, convenience stores as well.
However, given that Amazon is scheduled to close on its acquisition of PillPack by the end of the year — a story which itself sent its own respective shockwaves through the healthcare markets — another interesting angle on the “thousands of new Amazon stores” story is that of pharmacies and healthcare. With PillPack, Amazon will get pharmaceutical licenses in almost every state. What would that mean for CVS, Walgreens, Walmart, Rite-Aid, grocery pharmacies, and the rest?
While Amazon has made several high-profile healthcare-related hires lately, we haven’t seen specific evidence that Amazon intends to provide physical healthcare services, a la Minute Clinics. But over time we think this is an area to keep an eye on given the potential revenue growth opportunity for Amazon.