Shopping Centers Today

SEP 2018

Shopping Centers Today is the news magazine of the International Council of Shopping Centers (ICSC)

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of the two brands. Meanwhile, the CVS decision to put pharmacies inside some Target stores is giving net-lease buyers pause in cases where CVS and Target stores are lo- cated near each other, says Sean O'Shea, man- aging director of the net-lease division of Los Angeles–based BRC Advisors. During the Walgreens Boots Alliance fiscal third-quarter earnings call, held the same day as the Amazon and PillPack announcement, CEO Stefano Pessina told analysts that the deal did not worry him and that physical pharma- cies would "continue to be very, very important in the future." He pointed out that PillPack was still a small company and that the pharmacy industry was more complex than just delivering pills. In 2017 PillPack generated about $100 million in revenue — minuscule when compared with the estimated $340 billion U.S. consumers spent on medicine for the year, according to the Centers for Medicare & Medicaid Services. Moreover, if Amazon is to fully immerse itself in the pharmacy industry, it will need to take some ad- ditional steps, says Blankstein. ose steps, he explains, include building relationships with the prescription- benefit managers that administer drug plans for health-plan sponsors and which therefore have a say in where consumers buy their prescriptions. Drugstores already have such ties to these prescription-benefit managers, even to the point of owning them outright in some cases, as CVS does. CVS is also acquiring health insurance company Aetna to help secure a pool of customers. But in the event that Amazon is able to work out those details, its formidable expertise in delivering competitively priced products could spell trouble, O'Shea argues, especial- ly in view of the fact that the younger consumers who have grown up using its e-commerce platform have begun displacing their elders. "e name of the game is market share, and that's the tricky part going forward," O'Shea said. "It's not a 'location A versus location B' debate anymore, because the digital shelf and the physical shelf are the same. It's a question of delivery systems: Which one is more user-friendly and cheaper? at's where the ground is shiing." n THE TOP SOURCE FOR NET LEASE REAL ESTATE LISTINGS NNNEX is a marketplace to list or buy net-leased retail, office or industrial properties throughout the United States. Since its 2005 launch, NNNEX members have listed and sold more than $5 billion of net-leased real estate. NNNEX features a continuously growing pool of property listings added directly by sellers or brokers Offering a FREE STANDARD LISTING and FREE EMAIL CAMPAIGN to new users EMAIL us for your free promo codes: PROMOS@nnnex.com www.nnnex.com In 2017 PillPack generated about in revenue — minuscule when compared with the estimated U.S. consumers spent on medicine for the year billion $340 million $100

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