This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

Walgreen Trails CVS in the In-Store Clinic Race to Keep You Healthy

Updates in 4th paragraph that Target now has 80 clinic locations in seven states.

NEW YORK (TheStreet) -- When it comes to in-store health clinics, Walgreen (WAG) is being left in the dust by competitor CVS Caremark (CVS - Get Report) , and that's not healthy for Walgreen stock.

At around $61, Walgreen shares are up 6% for the year to date. CVS stock, at around $79, is up nearly 11% for the same period. But the fight isn't just between these companies: Both are also feeling the heat of increasing competition from discount retailers Wal-Mart (WMT) and Target (TGT) .

Read More: Warren Buffett's Top 10 Dividend Stocks

Why? Because thanks to the Affordable Care Act there are now millions of consumers whose coverage for preventive care is now paid for by insurance. While the clinics don't replace the family doctor, they can be expected to draw those who need the services provided by the clinics' licensed nurse practitioners, including treating common minor ailments and offering some screenings and vaccinations, among others. That, in turn, drives traffic into the stores.

These clinics have been very successful for CVS, which has 836 of its "MinuteClinics" in 28 states and the District of Columbia. Walgreen, by contrast, has about 400 in 19 states. Wal-Mart has 102 clinics in 19 states. Target has over 80 locations in seven states, according to a company representative.

There's still plenty of room for growth for Walgreen, and the company has plans to add more clinics. "Although our current health care clinic business does not reach the level required to disclose its revenue, we intend to continue growing the business. We will open approximately 40 more clinics in the next 12 months," said Walgreen's spokesman Michael Polzin.

Recently, Walgreen released the results of a study that highlighted the dramatic increase in U.S. of patients relying on nurse practitioners at retail clinics to provide chronic and preventive health services, jumping to 17% in 2013 from 4% in 2007.

CVS still has nearly 90% of its locations without health clinics and Walgreen's more than 95%. Neither Wal-Mart nor Target have clinics in more than 100 of the many stores each entity operates.

Read More: Why Apple's iPhone 6 Won't Be Late

CVS is winning the race for providing the most health care clinics in the U.S. with Walgreen a distant second. Currently only 33% of Americans live within 10 minutes of a Walgreen Healthcare Clinic, according to estimates provided by both the company and the Convenient Care Association.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
WAG $81.65 2.05%
CVS $103.87 0.00%
AAPL $128.46 0.00%
FB $78.97 0.00%
GOOG $558.40 0.00%

Markets

DOW 18,132.70 -81.72 -0.45%
S&P 500 2,104.50 -6.24 -0.30%
NASDAQ 4,963.5270 -24.3630 -0.49%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs