CVS shares were down about 3%, Walgreens was down nearly 4% and Rite Aid fell more than 4%.
Amazon is considering whether to push further into selling prescriptions by opening stand-alone retail pharmacies or adding them to Whole Foods stores, according to a report by Business Insider that cited three anonymous people familiar with the matter.
According to the report, discussions are in exploratory stages and if Amazon moves forward with the idea, it could take more than a year for the company to start opening stores.
An Amazon spokesperson said the company doesn’t comment on rumor or speculation.
“Amazon Pharmacy is focused on making at-home delivery pharmacy easier and more convenient for customers,” the spokesperson said in a statement.
CVS, Walgreens and Rite Aid have already been squeezed by Amazon, as more consumers buy front-of-store items like shampoo and toilet paper online. That disruption has caused drugstore chains to look for other ways to drive foot traffic and boost sales. CVS is adding more health-care services to its stores, from primary care visits to sleep apnea screenings. Walgreens has focused on speedy and convenient services, such as curbside pickup and home delivery. And Rite Aid has refreshed its stores with new signage and a different mix of products on shelves.