No, Walmart Does Not Own Walgreens – Here‘s the Real Relationship Explained

If you‘ve ever wondered whether retail giants Walmart and Walgreens are actually sister companies, you‘re not alone.

With their similar sounding names and presence in cities across America, it‘s easy to assume Walmart owns Walgreens. But the short answer is no—Walmart and Walgreens operate as independent retailers.

However, the companies do compete across select products and services, mainly in the pharmacy space. In this comprehensive guide, we’ll unpack the true relationship between Walmart and Walgreens.

By the end, you’ll understand who owns Walgreens, how the companies stack up, and why Walmart hasn’t acquired this pharmacy chain. Let’s dive in.

A Short History of Walmart and Walgreens

First, let’s look back at when these retail giants were founded and how they expanded over time.

Walmart

Walmart has grown from humble beginnings in Arkansas to become the #1 company on the Fortune 500 list.

• Founded in 1962 by Sam Walton

• Opened first department store in Rogers, Arkansas

• Went public on the NYSE in 1970, valued at $16M

• By 1990, Walmart surpassed Sears as the nation’s largest retailer

• Walmart opened its first Supercenter combining groceries and general merchandise in 1988

• Today operates over 10,500 stores and clubs in 24 countries

Walgreens

Walgreens traces its roots back to 1901 and has expanded through mergers and acquisitions.

• Founded in 1901 by Charles R. Walgreen Sr. in Chicago, IL

• By 1913, Walgreens had grown to 20 stores mainly in the Chicago area

• Expanded by opening its 500th store in New York City in 1932

• Merged with European retailer Boots in 2014 to form Walgreens Boots Alliance

• Acquired Duane Reade in 2010 and Rite Aid stores in 2017 for further expansion

• Today operates 21,000+ stores globally including 9,000+ Walgreens locations

As you can see, both companies found their footing in the 20th century by aggressively opening new locations to achieve nationwide scale.

However, Walmart remains much larger than Walgreens in terms of physical stores and overall sales. Next we’ll look at ownership.

Who Actually Owns and Controls Walgreens?

While Walgreens has been around for over 120 years, the pharmacy chain is no longer owned or run by the Walgreen family.

Here’s a brief overview of Walgreens’ changing ownership structure:

• 1901 to 2009: Controlled by Walgreen family

• 2009: Last Walgreen family member, Executive VP Kevin Walgreen, resigned

• 2012: Walgreens acquires 45% stake in European pharmacy Alliance Boots

• 2014: Walgreens fully acquires Alliance Boots to form Walgreens Boots Alliance

• 2021: AmerisourceBergen acquires 29% stake in Walgreens Boots Alliance

• Today: Walgreens Boots Alliance is a publicly traded company, with AmerisourceBergen holding a 43% controlling stake

So unlike Walmart, which is still owned and controlled by the Walton family, Walgreens is now primarily owned by pharmaceutical wholesaler AmerisourceBergen.

Walmart’s ownership has remained stable over the years:

• 1962 to today: Controlled by Walton family

• Walmart Inc. is a publicly traded company (NYSE: WMT)

• Around half of Walmart’s shares are owned by the Waltons

• The Walton family collectively owns the world’s largest fortune at $238 billion

It’s clear the ownership structures of Walgreens and Walmart are very different, which already rules out the possibility ofWalmart outright owning Walgreens. Next let’s compare the scale of the two companies.

How Do Walmart and Walgreens Compare by the Numbers?

Although Walgreens has grown through major acquisitions, Walmart still absolutely dwarfs the pharmacy chain across key metrics:

	Walmart	Walgreens Boots Alliance
2022 Revenue	$573B	$134B
Net Income	$13.5B	$4.33B
Total Stores	10,500	21,000
Countries	24	11
Employees	2.3M	315,000
Market Cap	$382B	$29B
1-Year Stock Change	-7%	-29%

Data sources: CompaniesMarketCap.com, macrotrends.net, corporate reports

In terms of pharmacy market share specifically:

• Walmart pharmacy: 5% retail pharmacy market share

• Walgreens pharmacy: 21% retail pharmacy market share

So although both companies have thousands of locations worldwide and sizable revenues, Walmart is clearly in another league financially. Walgreens does hold a 4x larger share of the pharmacy market however.

Next let’s explore the key services and offerings at Walgreens versus Walmart.

Comparing Services: Walgreens vs. Walmart

When you walk into a Walgreens or Walmart store, you’ll notice some similarities but many differences.

Here’s an overview of the major services offered by each brand:

Walgreens

• Retail pharmacy – Main offering; prescription drugs and immunizations

• Health and wellness – Preventive care and screenings, specialty pharmacy

• Photo services – Digital photo printing, cards, books, enlargements

• Convenience goods – Household essentials, personal care, snacks, drinks

• Beauty – Extensive makeup, skincare, hair, fragrance, bath products

• Optical – Exam lanes, eyeglasses, contacts

Walmart

• Pharmacy – Prescription drugs, immunizations, $4 generic drug program

• Vision – Optometrist offices for eye exams, glasses and contacts

• Health clinics – Basic care clinics in partnership with healthcare providers

• Groceries – Produce, meat, dairy, bakery, pantry staples, prepared foods

• General merchandise – Clothing, electronics, home goods, outdoor, toys, auto

• Services – Financial services, auto care centers, pet shops

Key Differences:

• Focus: Walgreens specialized in pharmacy/health; Walmart broader across categories

• Pharmacy: Walgreens drives high pharmacy volume with 21% market share vs. 5% for Walmart

• Groceries: Walmart is #1 U.S. grocer; Walgreens has limited grocery selection

• Stores: Walgreens smaller footprint stores in urban areas; Walmart massive supercenters

• Brands: Walgreens features prestige beauty brands; Walmart reliant on private label

Overlaps:

• Both offer pharmacy services and basic health clinics

• Compete in select consumables like photo printing, snacks, household goods

• Similar private label product approach with brands like Nice! (Walgreens) and Equate (Walmart)

So in terms of the customer experience, while you can fill prescriptions and grab milk at both chains, Walgreens is more convenience and healthcare focused, while Walmart prides itself on one-stop shopping.

Next let’s look at other companies that are part of the Walmart and Walgreens families.

What Other Companies Do These Retailers Own?

Both Walgreens Boots Alliance and Walmart have made key acquisitions over the past 10-15 years to expand their capabilities and reach new markets globally.

Recent Walgreens acquisitions include:

• Duane Reade – acquired New York City drugstore chain in 2010 for $1.1B

• Rite Aid – acquired 1,900 Rite Aid stores in 2017 for $4.4B

• AmerisourceBergen – acquired 29% stake in 2021; now owns 43% controlling stake

Walmart has acquired many companies including:

• Flipkart – Indian e-commerce site, Walmart owns 77%, acquired for $16B in 2018

• Jet.com – U.S. online retailer, acquired for $3.3B in 2016

• Bonobos – Trendy menswear brand, acquired for $310M in 2017

• ModCloth – Womens’ apparel brand, acquired by Walmart in 2017

• Moosejaw – Outdoor recreation retailer, acquired in 2017 for $51M

Key difference:

• Walgreens acquisitions mainly pharmacy chains to expand retail footprint

• Walmart acquisitions in broader e-commerce and retail to boost online presence

Again, we see Walmart making much larger technology investments while Walgreens focuses narrowly on pharmacy.

Why Hasn‘t Walmart Acquired Walgreens?

Given Walmart’s track record of major acquisitions along with Walgreens’ recent industry consolidation, you might wonder if Walmart may attempt to acquire Walgreens down the line.

There are a few reasons why Walmart is unlikely to ever purchase Walgreens outright:

• Antitrust issues – As the #1 and #2 pharmacy retailers, a merger could face regulatory challenges

• Business focus – Walmart sees e-commerce and emerging tech as bigger growth areas than pharmacy

• Geography – With 10,500 stores already, Walmart has sufficient physical footprint without Walgreens’ 9,000 additional locations

• Financials – Walgreens $29 billion market cap would be a sizable acquisition even for Walmart

• Model – Walmart may not want to contend with operating smaller-format stores in urban markets

The bottom line is acquiring massive pharmacy player Walgreens does not align with Walmart’s strategic priorities. Walmart is instead expanding into healthcare through partnerships, standalone clinics, and its own pharmacy division.

So for now, the two companies will continue to operate independently despite occasional competitive friction.

Key Takeaways: Walmart and Walgreens Relationship

We‘ve covered a lot of ground on Walmart and Walgreens‘ history, ownership structures, offerings, acquisitions, and competitive relationship.

Here are the key facts on whether Walmart owns Walgreens:

• Walmart and Walgreens are independent companies that compete across pharmacy services and other select offerings.

• The majority owner of Walgreens is pharmaceutical wholesaler AmerisourceBergen. Walmart is still owned and controlled by the Walton family.

• Walmart is over 4X larger than Walgreens Boots Alliance in terms of revenue and physical stores.

• Walgreens has a larger share (21%) of the pharmacy market compared to Walmart (5%).

• Walmart is focused on expanding into e-commerce and technology rather than acquiring pharmacy chains like Walgreens.

• While you can fill prescriptions and shop for everyday essentials at both chains, Walmart and Walgreens ultimately operate separately under distinct business models.

So next time you’re shopping for groceries or medication and wondering whether your purchases will earn you Walgreens or Walmart rewards points, keep this analysis in mind. The relationship is competitor, not owner.

I hope this comprehensive guide provided clarity on the past, present and future relationship between retail titans Walmart and Walgreens. Let me know if you have any other questions!