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Costco Pharmacy
Costco Pharmacy operates inside the company's membership warehouse club locations, and unlike most Costco departments, prescription pharmacy purchases and consultations are legally required to be available to non-members as well, since pharmacy access cannot be restricted by membership under federal and state regulations in most areas. The pharmacy built a reputation for competitive prescription pricing, benefiting from Costco's broader business model of prioritizing high sales volume and low markups over per-item profit margin, an approach the company applies across its general merchandise as well. Costco Pharmacy has consistently ranked highly in customer satisfaction surveys covering pharmacy services, frequently cited for lower out-of-pocket prescription costs compared to dedicated pharmacy chains, particularly for cash-paying customers without insurance coverage. Costco Pharmacy's combination of its unusual open-to-non-members legal structure and its consistently strong customer satisfaction rankings has made it one of the most distinctively positioned pharmacy operations in American retail.
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CVS Pharmacy
CVS was founded in 1963 in Lowell, Massachusetts by brothers Stanley and Sidney Goldstein along with Ralph Hoagland, originally opening as a health and beauty aid discount store before adding pharmacy counters to its locations starting in 1967. The company grew into the largest pharmacy chain in the United States by store count and revenue, and its 2007 acquisition of Caremark, a major pharmacy benefit manager, along with its 2018 acquisition of health insurer Aetna, transformed CVS Health into one of the largest integrated healthcare companies in the country. CVS drew significant national attention in 2014 when it became the first major U.S. pharmacy chain to voluntarily stop selling tobacco products in all of its stores, a decision the company framed as aligning its retail business with its broader healthcare mission. CVS's combination of its growth into the largest pharmacy chain in the country and its transformation into a vertically integrated healthcare and insurance conglomerate has made it one of the most structurally significant companies in the American pharmacy industry.
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