Amazon rattles pharmacy world
NEW YORK – Now at Amazon.com: insulin and inhalers.
The retail colossus opened an online pharmacy Tuesday that allows customers to order medication or prescription refills for home delivery.
The potential impact of Amazon’s arrival in the pharmaceutical space rippled through that sector immediately. The stocks of CVS Health Corp., Walgreens and Rite Aid tumbled Tuesday.
Shares of Walgreens fell more than 9%, with Rite Aid down 16% and CVS down more than 8%. Amazon stock rose slightly on a day broader indexes declined.
The big chains rely on their pharmacies for a steady flow of shoppers who may also grab a snack or shampoo or groceries. All have upped online services and touted their abilities to deliver prescriptions and other goods as the COVID-19 pandemic has pushed more consumers to stay home.
But Amazon.com has mastered these things and its online store is larger, with millions of loyal shoppers already buying books, TVS and just about anything else.
“The news represents a disruption to the system and competitive threat that will likely shift scripts away from the retail channel,” analysts at Citi Research said in a note.
Amazon has a history of disruption. Launched in 1995 as an online bookstore, it pushed other booksellers to sell online. But those that couldn’t keep up went out of business, like the Borders bookstore chain, which disappeared in 2011.
Amazon’s purchase of Whole Foods three years ago sent supermarket stocks spiraling, but many have been able to hold their own against Amazon, offering home delivery and curbside pickup of groceries.
Amazon has also become a threat to shipping companies, delivering more than half of its own packages itself. Vans stamped with the Amazon logo have become as common a sight as the
Akron. The recession brought on by the coronavirus reversed that trend.
“When the virus is spread through personal contact, jobs where you interact with people, that becomes a nonstarter,” Weinstein said.
Wolf's Ridge Brewing had as many as eight people working in the Downtown taproom on a busy weekend shift before the pandemic, said Alisha Kaplan, the bar manager. Now that number is as low as two or three.
“It's definitely a smaller operation,” she said.
Coronavirus restrictions have included a ban on alcohol sales after 10 p.m., meaning bars that depend on late night business are especially hard hit. On Tuesday, Dewine said bars must close their doors at 10.
Bartenders who staff those taverns have felt the pinch.
“On the weekends, it affects sales tremendously,” said Andria Walker, a bartender at Nasty's Bar and Grill in Hilliard who finds herself spending more frugally since the pandemic began.
In pre-pandemic times, bars can serve alcohol until 2 a.m., and Walker generally arrives for an evening shift in the late afternoon.
“Now you have not even half the time to make the same amount of money,” she said.
Dewine said state government is assessing whether to temporarily shutter restaurants and bars with coronavirus cases spiking in recent weeks. Parsons finds herself dreading such a decision. With a $1,400 monthly rent, weekly unemployment checks wouldn't cover her bills.
“I don't know what they expect us to do,” she said.
Justin Ryan, a bartender at the Land Grant Brewing Company taproom in Franklinton, is not thrilled at the prospect of going on unemployment if the taproom closes again.
“(Unemployment) is not the same as what I'm making,” he said. “I would have to find another source of income.”
Kaplan, at Wolf 's Ridge, said a shutdown is particularly unnerving for those who have done their best to slow the spread of the coronavirus.
“I think the upcoming shutdown is very disheartening for a lot of us, especially those of us who have tried to so hard to instill these really safe practices and care about the safety of guests and staff,” she said.
A handful of establishments that boast cadres of loyal customers say business is strong.
Kingy's Pizza in Canal Winchester has a loyal following and experienced a steady stream of diners since Dewine lifted a stay-at-home order in the spring, bartender Carrie Ahlers said.
“Our customers are like family,” she said. “We have people that come in every day.”
The Morgan House restaurant in Dublin is down to roughly 40% of its pre-coronavirus seating capacity, but server Jayne Caffrey said she's picked up more carryout orders as customers take their meals with them. Customers have also been generous with their tips, she said.
“They know we're working harder,” Caffrey said.
With the pandemic, Caffrey said she's taken on a multitude of additional responsibilities. And she isn't alone.
Ryan said he's felt almost like a lifeguard since the coronavirus pandemic reached Ohio, making sure customers wear masks when they aren't eating or drinking and admonishing those who don't.
“The majority follow the rules, but we get at least a person a week if not several who are upset with the rules and argue,” he said. “I had to learn new deescalation tactics to serve those customers.”
Those tactics include reminding patrons that Ohio has a mask mandate.
“We try to take the politics out of it and make it more like ‘this is the situation we're in,'” Ryan said.
But cleaning and sanitizing are by far the biggest additional duties bartenders and servers have taken on during the pandemic.
“We've always maintained a high standard,” Ahlers said. “The changes would be wearing the masks and washing things down continuously.”
Restaurant and bar workers said they thoroughly wash and sanitize everything a customer has touched.
“It's a continuous thing,” Alhers said. “We're doing it all the time.” pcooley@dispatch.com @Patrickacooley