Does Walmart Own Walgreens In 2023? (Not What You Think)
The short answer is no, Walmart does not own Walgreens. Walgreens operates independently from Walmart.
As a successful Amazon FBA seller who specializes in ecommerce and data analytics, I‘ve done extensive research on major US retailers like Walmart and Walgreens. I know there‘s a lot of consumer interest around which brands and chains are owned by the retail giants.
In this detailed guide, I‘ll give you an in-depth look at who really owns Walgreens, how Walgreens and Walmart differ in their core businesses, the many companies Walmart does own, and more key insights. Let‘s dive in!
Walgreens Ownership Breakdown
Walgreens has undergone some major ownership changes over the past decade. Here‘s a quick history:
Founded in 1901 by Charles R. Walgreen Sr. in Chicago, IL.
The Walgreen family retained ownership into the 2000s, with Kevin Walgreen serving as the last family member on the board.
In 2014, Walgreens acquired the remaining 55% stake of Alliance Boots to form Walgreens Boots Alliance.
In 2021, Walgreens Boots Alliance sold a majority 57% stake of its Alliance Healthcare business to AmerisourceBergen.
So today, Walgreens is majority owned by AmerisourceBergen, one of the largest pharmaceutical distributors in the US. The Walgreen family no longer has any ownership.
Walgreens vs. Walmart at a Glance
| Metric | Walgreens | Walmart |
|---|---|---|
| 2021 Revenue | $132.5B | $573B |
| 2021 Net Income | $2.5B | $13.7B |
| 2021 Rx Volume | 825M | ~520M |
| 2021 Store Count | 9,021 | 10,500 |
| Key Offerings | Pharmacy, health, beauty | General merchandise, groceries |
As you can see from this high-level overview, Walmart is a massively larger retailer in terms of revenue, income and store count.
However, Walgreens dispensed over 300 million more prescriptions in 2021, highlighting its strength as America‘s second largest pharmacy retailer behind CVS.
Now let‘s look at some key differences between these two retail giants.
How Walgreens and Walmart Are Different
At first glance, Walgreens and Walmart may seem similar since they both operate pharmacies. But when you compare their business models, there are some major differences:
Store Format
Walgreens operates smaller, convenient pharmacy and health focused stores on high streets and urban settings. The average store is just 14,500 square feet.
Walmart runs massive supercenter stores averaging a whopping 178,000 square feet! These stores sell everything from groceries to clothing to outdoor equipment.
Product Selection
Walgreens has a highly specialized selection centered around pharmacy, health and beauty products. You can even find fresh prepared foods at some locations.
Walmart sells a massive general merchandise selection including electronics, home goods, auto, toys, and expanded grocery sections. Walmart prioritizes one-stop shopping.
Pharmacy Offerings
With over 9,000 locations, Walgreens has a bigger pharmacy business and captures more prescription volume than Walmart.
Walgreens offers specialty pharmacy services, infusion services, and manages care clinics at select stores. Services are tailored for healthcare.
Walmart has added more health services like low-cost clinics, but pharmacy is not the core focus. Prescriptions make up just 3% of Walmart‘s revenue.
Price Positioning
Walgreens promotes itself as a convenient neighborhood pharmacy that provides personalized care and helpful service.
Walmart dominates on rock-bottom pricing using its economy of scale. Brand name prescriptions are often cheaper at Walmart.
So in summary, Walgreens positions itself as a healthcare and pharmacy specialist, while Walmart leads on one-stop shopping convenience and everyday low prices.
What Companies Does Walmart Own?
Walmart may not own Walgreens, but it does have an extensive portfolio of retail chains and brands. Some major companies owned by Walmart include:
Jet.com – Walmart acquired this online retailer for $3.3 billion in 2016 as part of its e-commerce strategy.
Flipkart – Leading Indian e-commerce company that Walmart purchased a 77% stake in for $16 billion.
Asda – Walmart‘s wholly owned UK supermarket chain, which operates over 600 stores.
Seiyu – Walmart owns over 90% of this major Japanese supermarket chain.
Sam‘s Club – Walmart‘s membership warehouse club with nearly 600 locations across the US.
ModCloth – Women‘s online fashion brand bought by Walmart in 2017 to appeal to millennial shoppers.
In addition to chains and sites, Walmart owns dozens of popular consumer brands like Equate, Parent‘s Choice, George, and more.
The Bottom Line
I hope this detailed guide gave you a helpful overview comparing Walgreens and Walmart. Even though they are both big names in retail and offer pharmacy services, Walmart does not own Walgreens.
Walgreens is actually majority owned by the pharmaceutical company AmerisourceBergen today. Meanwhile, Walmart continues to expand its healthcare offerings, but general merchandise and groceries remain its core business.
With its thousands of stores and strategic acquisitions, Walmart does own many other major retail chains that help make it the largest retailer worldwide.
Let me know if you have any other retail ownership questions! I‘m always happy to provide consumer insights based on my background as an ecommerce seller.
