Pharmacies and Drug Stores Revenue Benchmarks
The average pharmacies and drug stores business in the United States generates $13.4M in annual revenue, according to the U.S. Census Bureau Statistics of U.S. Businesses (SUSB 2021). There are 19,261 pharmacies and drug stores businesses in the U.S., employing 663,384 workers with an average profit margin of 4.0%.
What Does a Pharmacies and Drug Stores Business Actually Do?
Retail pharmacies dispensing prescription medications plus front-of-store merchandise. Include chains (CVS, Walgreens), grocery-store pharmacies, and independent pharmacies.
Who buys: Patients filling prescriptions, walk-in consumers for OTC and general merchandise.
Average Revenue
$13.4M
per year
Profit Margin
4.0%
industry average
Revenue / Employee
$390K
per year
Total Businesses
19,261
in the US
Est. Owner Income
$537K
small business avg
Labor Cost
10.0%
of revenue
Avg Employee Wage
N/A
per year (BLS)
Market Saturation
5.8
firms per 100K people
How Much Do Pharmacies and Drug Stores Charge?
Retail pharmacies earn on prescription reimbursement + retail markup on front-of-store items.
| Service | Typical range |
|---|---|
Prescription gross per Rx (generic) | $5–15 |
Prescription gross per Rx (brand) | $8–25 |
Front-of-store markup | 25–50% |
OTC medication markup | 40–100% |
COVID/flu shot cash pay | $25–50 (often insurance-paid) |
Ranges based on industry rate surveys and typical published pricing. Actual quotes vary by city, business size, and job complexity.
Complete pharmacies and drug stores business plan
A 12-section data-backed business plan for a pharmacies and drug stores business — executive summary, market analysis, competitive landscape, revenue model, 3-year financial projections, operations, marketing, staffing, funding request. Pre-populated with real Census, IRS, and BLS data on this industry. Free to view.
Cost Structure — Where Every $100 in Revenue Goes
Approximate P&L breakdown for the pharmacies and drug stores industry. Labor share and net profit are grounded in Census SUSB and IRS SOI data. Other lines are split using sector-typical ratios.
| Category | Per $100 revenue | Per typical business | What's in it |
|---|---|---|---|
Cost of goods sold | $65 | $8.7M | Wholesale cost of merchandise purchased for resale. Retail's biggest expense. |
Wages & benefits | $10 | $1.3M | Payroll for all employees at the business (owner comp not included for small owner-operators). |
Rent & facilities | $9 | $1.2M | Rent or mortgage on business location plus utilities tied to the space. |
Marketing & advertising | $4 | $577K | Google/Meta ads, SEO, print, referral fees, event sponsorships. |
Other operating costs | $9 | $1.2M | Utilities, POS fees, shrinkage, insurance, store maintenance. |
Net profit | $4 | $537K | What remains for the owner or shareholders after all business expenses. |
Directionally accurate for a typical business in the industry. Individual businesses vary widely — a franchise may run a very different cost mix from an independent, and older established businesses often have lower labor share than newer ones.
Average Revenue by Business Size
Industry Dynamics (Census BDS 2023)
New Business Rate
5.26%
openings/year
Closure Rate
5.58%
closings/year
Net Job Growth
+5.68%
annual
Businesses Closed
3,445
in 2023
Firm Count Trend
Should You Start a Pharmacies and Drug Stores Business?
Startup Cost
$75K – $400K
Break-Even
5 months
5-Year Survival Rate
48.0%
Related Industries
Frequently Asked Questions
- What does a pharmacies and drug stores business do?
- Retail pharmacies dispensing prescription medications plus front-of-store merchandise. Include chains (CVS, Walgreens), grocery-store pharmacies, and independent pharmacies. Patients filling prescriptions, walk-in consumers for OTC and general merchandise.
- How much do pharmacies and drug stores charge?
- Retail pharmacies earn on prescription reimbursement + retail markup on front-of-store items. See the pricing table above for typical rates by service type.
- How much does the average pharmacies and drug stores make per year?
- The average pharmacies and drug stores business generates $13.4M in annual revenue, based on U.S. Census Bureau data (SUSB 2021). After expenses, the estimated owner profit is $537K per year at a 4.0% profit margin.
- How many pharmacies and drug stores businesses are there in the US?
- There are 19,261 pharmacies and drug stores businesses operating in the United States, employing a total of 663,384 workers.
- How much does it cost to start a pharmacies and drug stores business?
- Startup costs for a pharmacies and drug stores business typically range from $75K to $400K, with a 5-year survival rate of 48.0%.
Industry Growth & Survival
The pharmacies and drug stores industry is actively growing — adding jobs at a net rate of 5.7% per year. New establishments are opening faster than existing ones close (5.3% entry vs 5.6% exit), indicating healthy demand.
Approximately 75% of pharmacies and drug stores businesses survive their first 5 years. This is above the national average (~50%), making it a relatively safe industry to enter. In 2023, 3,445 firms in this industry closed permanently.
Industry Trend (2000–2023)
The pharmacies and drug stores industry has declined 6% since 2000 (from 40,065 to 37,589 firms).
See full historical statistics →Compare Pharmacies and Drug Stores revenue with other industries: