Nondirect competitors, such as the booming industry of mail order businesses and mass merchants like Wal Mart, pose a threat to pharmacy sales.
Walgreens' history of consitency has given the company continually solid performances, but the company lacks catalysts to boost its current earnings.
The recent merger of CVS and Caremark will give competitors an edge in the revenue department, and allow CVS/Caremark greater access to the ever growing market of PBM businesses.