--- title: "Retail Pharmacies Industry: Companies" description: "3 SEC filers are classified under the Standard Industrial Classification code that describes the retail pharmacies industry." canonical: https://www.getswoopr.com/stocks/industries/health-care/retail-pharmacies/ source: "Swoopr Investment: https://www.getswoopr.com" --- # Retail Pharmacies Industry ## Direct Answer 3 SEC filers are classified under the Standard Industrial Classification code that describes the retail pharmacies industry, and their latest annual reports show $403.7 billion of combined revenue and a median operating margin of 1.2%. Investors should still evaluate its revenue model, industry-specific KPIs, valuation framework and the risks that can change the group's economics. ## Industry Overview Retail pharmacies operate community drug stores that fill prescriptions and sell health and consumer products. Prescription margins are set by payers, so front-store sales and cost control matter. The first numbers to compare across companies here are prescription volume, pharmacy gross margin and front-store comparable sales. ## Key Industry Metrics - **Prescription volume**: Number of prescriptions filled. It drives traffic and gross profit, and follows population and plan networks. - **Pharmacy gross margin**: Share of pharmacy sales left after drug cost. Reimbursement set by payers largely determines it, and it often falls when rates are cut. - **Front-store comparable sales**: Sales growth in non-prescription goods at stores open in both periods. It shows consumer demand and traffic outside the pharmacy counter. - **Store count**: Number of stores operating. Closures can improve profit, but reduce reach and prescription volume. - **Operating margin**: Share of revenue left after cost of goods and operating expenses. It combines pharmacy and front-store profit with store costs. ## Primary Macro Drivers - **Reimbursement rates**: Government and plan payments set the margin on each prescription, so reimbursement changes move pharmacy gross margin. - **Prescription growth**: An aging population and more drugs per patient lift prescription volume, which drives foot traffic and front-store sales. - **Consumer traffic**: Customers who come for prescriptions also buy other goods, so traffic trends move front-store comparable sales. - **Healthcare services**: Clinics and testing in stores bring patients in and add fees, which supports revenue beyond prescriptions. ## Major Risks - **Reimbursement pressure**: Payments from insurers and benefit managers may fall below the cost of drugs, squeezing prescription gross margin; watch pharmacy gross margin and reimbursement commentary. - **Competition from online and mass retailers**: Mail order, online and big-box retailers draw prescriptions and front-store purchases; watch prescription volume and comparable sales. - **Store closures**: Weak stores are closed to save money, which can lower sales and trigger lease costs; watch store count and impairment notes. - **Litigation**: Suits over drug dispensing and pricing can bring large settlements; watch legal proceedings and reserves. ## Industry Characteristics | Characteristic | Profile | | --- | --- | | Cyclicality | Defensive | | Capital Intensity | Medium | | Regulatory Intensity | High | | Industry Maturity | Mature | | Geographic Importance | U.S. | ## Retail Pharmacies Filers in the SEC Record 3 companies with annual reports in the dataset are classified by the SEC in the Standard Industrial Classification code 5912. Their latest fiscal years end between 2025 and 2026, and together they reported $403.7 billion of revenue. Median revenue growth over the prior year was 7.8%. Median operating margin was 1.2% and median net margin 0.4%. Median total liabilities were 64% of total assets, and 2 of 3 reported a profit in their latest year. | Company | Revenue | Growth | Operating margin | Net margin | Year | | --- | --- | --- | --- | --- | --- | | [Cvs Health Corp](https://www.getswoopr.com/stocks/companies/cvs-health/) | $402.1 billion | 7.8% | 1.2% | 0.4% | FY 2025 | | [Guardian Pharmacy Services, Inc.](https://www.getswoopr.com/stocks/companies/guardian-pharmacy-services-inc/) | $1.4 billion | 17.9% | 5.0% | 3.4% | FY 2025 | | [Petmed Express Inc](https://www.getswoopr.com/stocks/companies/petmed-express-inc/) | $179 million | -21.1% | -32.8% | -32.0% | FY 2026 | Source: each company's own annual report as filed with the SEC (XBRL data), figures in U.S. dollars. A company's SIC code reflects its main business as the SEC records it, so it can differ from how an index provider or analyst classifies the company, and a diversified group appears under only one code. ## Where to Go Next The Retail Pharmacies guide describes how the industry earns money, what to measure and what can go wrong. 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Key performance indicators for the Retail Pharmacies industry include: Prescription volume, Pharmacy gross margin, Front-store comparable sales, Store count, Operating margin. Which matter most depends on the company's model, so compare them across several companies rather than relying on one. How cyclical is the Retail Pharmacies industry? The Retail Pharmacies industry is generally defensive, meaning demand tends to remain relatively stable regardless of the economic cycle. Companies in this space can provide portfolio stability during recessions, though growth may lag in strong expansions. What are the biggest risks in the Retail Pharmacies industry? The primary risks for Retail Pharmacies companies include: Reimbursement pressure, Competition from online and mass retailers, Store closures, Litigation. Investors should assess each company's exposure to these factors and its track record of navigating them. **[Swoopr Editorial Team](https://www.getswoopr.com/authors/swoopr-editorial-team/)** Swoopr's editorial team produces independent investment education content reviewed for accuracy and clarity. We do not provide personalized financial advice. See our [editorial policy](https://www.getswoopr.com/legal/editorial-policy/) and [corrections policy](https://www.getswoopr.com/legal/corrections-policy/).