What has happened in my city (and possibly others) is these $4 generic rx's offered by Wal-Mart has put more pressure than ever on "Mom and Pop" independent pharmacies (which were barely getting by in the first place). Since the advent of the $4 rx's in my town 3 different independent pharmacies have sold to Walgreens. After taking their business we are now busier than ever and without having to adjust our pricing schedules. Most of these customers prefer our convenience and longer hours to the hassle of going to a Wal-mart just to save a dollar or two. Wal-Mart is "crushing the competition" but it was "Mom and Pop" who were in the crosshairs, not Walgreens.
Cash-only niche pharmacies are also sweating bullets over WMT�s $4 program. And with lower reimbursement from Medicare Part-D, a lot of independents are throwing in the towel. I�ve also heard of Walgreens aggressive courting of independents, buying their scripts and hiring the pharmacists to boot. It�s a brilliant counter-strategy to WMT�s PR gimmick.