Walmart is stepping up its service game with the launch of same-day prescription delivery, responding to increasing customer demand for convenience. Customers can now have their medications delivered alongside groceries, creating the ultimate one-stop-shop experience right at their homes. The program, which kicked off this week, is currently available across six states: Arkansas, Missouri, New York, Nevada, South Carolina, and Wisconsin. The retail behemoth plans to expand this service to nearly all U.S. states by January 2025.
This move is particularly timely, as many communities across the United States are starting to face the reality of 'pharmacy deserts,' where people struggle to access nearby pharmacies. With the notable closures of established pharmacies, such as Walgreens and CVS, Walmart is poised to fill the gap, aiming to deliver prescriptions to over 86% of U.S. households.
According to Walmart, this delivery service allows customers to seamlessly integrate their pharmacy needs with their grocery shopping. Shoppers can use the Walmart app or the website to add prescriptions to their carts, schedule their deliveries, and even utilize Walmart Plus membership benefits for free delivery. For those without the membership, there’s still the option to have medications brought to their doorstep, albeit for a fee of $10.
Recently conducted research indicated overwhelming support for this initiative; 55% of survey participants expressed interest in combining grocery and medication deliveries. Kevin Host, Walmart's Senior Vice President of Pharmacy, noted, "Our extensive footprint across the nation combined with our deep expertise in pharmacy uniquely positions us to make a significant impact." This strategy not only promises to serve the immediate needs of customers but also aims to alleviate the burden on brick-and-mortar pharmacy staff who can focus more on offering high-touch pharmacy services.
Walmart's launch coincides with another retail giant's announcement: Amazon is also enhancing its pharmacy delivery services. With both companies entering this segment aggressively, the competition is heated, particularly as traditional players grapple with budget pressures and store closures. Walgreens recently confirmed it would shutter 1,200 locations over the next three years, underscoring the pressing challenges within the industry.
The question arises—what’s behind the wave of closures at pharmacies? Experts point to several contributing factors: low reimbursement rates from pharmacy benefit managers, increasing competition from online retailers, and shifting consumer habits favoring big-box stores for front-of-house purchases. These dynamics have left many smaller pharmacies struggling to remain viable.
Pharmacy chains are feeling the pinch, not just from online giants but from their operational struggles as well. Rite Aid is recovering from bankruptcy, and CVS has plans to close around 300 stores. The wave of closures raises concerns about access to healthcare services for many communities, especially those with unique social vulnerabilities.
For Walmart's customers, the expanded availability of prescription delivery means they no longer have to balance multiple trips to the store. They can receive their medications as part of their grocery orders, achieving one of the core principles of convenience—everything they need, when and where they need it. Walmart's development of this service could redefine how people perceive pharmacy access and medication pickups moving forward.
This same-day delivery service does come with some limitations, as certain medications, such as controlled substances and items requiring temperature control, cannot be delivered. Adding features like 'on-demand' delivery options and express services within 30 minutes suggests Walmart is committed to enhancing customer experience. Awareness of regional health needs will be key, with some customers valuing the personalized touch of speaking to pharmacists.
The ability to pick up healthcare essentials without stepping outside one’s doorstep aligns with broader consumer behavior shifts, particularly during the pandemic when online options gained traction. This move by Walmart taps deeply rooted desires for convenience and comprehensive service.
Despite the potential benefits, the pharmacy sector contains regulatory hurdles not faced by typical retail operations. For example, certain healthcare information protections must be adhered to, adding layers of complexity to how Walmart executes its delivery model. The competitive environment promises growth but can also lead to significant regulatory challenges as these retail giants expand their healthcare offerings.
Chello. Walmart's extensive network will allow it to deliver to more households than Amazon, yet both companies are pushing forward. Experts believe the key differentiator will not just be who can deliver faster, but the ability to deliver more comprehensive healthcare services alongside traditional shopping.
Tom Ward, Walmart’s Executive Vice President and Chief E-Commerce Officer, voiced the overarching ambition of the delivery service: “If you’re sick, we can deliver the necessary medicine along with everything else you need to feel good—a holistic approach to care.” This marks a significant shift toward addressing consumer needs with integrated service options.
Both companies—Amazon and Walmart—are capitalizing on the shift toward e-commerce boosted by consumers who prefer to operate within the realms of convenience. Yet competitive pressures could likely lead to new innovations and service offerings, ensuring this area remains dynamic as both fulfill their roles within the health care market.
The intersecting challenges in the pharmacy business present opportunities for innovators like Walmart, who are reshaping their offerings around customer needs, tapping directly back to their roots of low prices and accessibility. With their combined grocery and pharmacy offerings, they are not just keeping up with the competition but could potentially lead the way through direct consumer engagement.
