August 20, 2021 – Drugstores are gearing up to administer Covid-19 booster shots, which are expected to deliver another sales bump for big chains including CVS Health Corp. and Walgreens Boots Alliance Inc, according to a report from the Wall Street Journal.
More people are getting their first shot amid a surge in cases driven by the highly contagious Delta variant and as more employers, businesses and government entities require people to get vaccinated for work, travel, and to participate in leisure activities.
As vaccine demand waned this summer, many government-run mass vaccination sites shut down, which has made drugstores a critical source for vaccines. Walgreens, for instance, says it has noted a 30% rise in demand for vaccines in the past few weeks while the U.S. overall has logged an increase of 15% to 25% in that time.
Hours after U.S. health officials last week approved third doses for Americans with weakened immune systems, CVS and Walgreens opened up for same-day or walk-in vaccination appointments for booster shots. On Wednesday, the Biden administration called for a third Covid-19 shot starting in the fall for adults, which would fuel another wave of demand.
Both CVS and Walgreens said this week that they are preparing for another wave of vaccine demand and have the capacity to administer booster shots.
Vaccines are delivering added revenue at a time when the pandemic has slowed store traffic and led to increased costs. Both CVS and Walgreens have said they are getting a significant boost from vaccine administration, particularly after the amount that CMS pays pharmacies and other providers rose this spring to $40 for each dose, up from $28 for a single dose and $45 for two doses.