CVS and Walgreens Corp. are taking a more measured approach to their relationship, which has been strained in recent months after a string of bad news.
The retail giant says it has no plans to buy gas stations and is investing $1 billion to improve the efficiency of its supply chain, including the construction of more efficient stations.
But Walgreen’s chairman, Paul Piff, says the chain needs to do more.
The chain is planning to invest $5 billion in its network, he said at a conference this month.
“We need to invest more and more into the delivery of gas,” Mr. Piff said.
Walgills main customer is the federal government, where it serves about half the nation’s population, and has also made its mark on other sectors.
Walgreen has said it is willing to invest up to $1.5 billion for infrastructure improvements.
“If we can help make it even better for customers, we will,” Mr., Piff added.
The retailer is expected to announce its plans for its gas stations in the coming weeks.
Analysts say that the company’s strategy for gas stations, which have seen little or no growth in recent years, will be based on the same fundamentals as it has in the past.
They note that the U.S. has a high concentration of consumers, who have been driving the gas boom, and that its economy is also slowing.