Walmart announced a new prescription delivery service on Tuesday, a move designed to boost convenience for customers as the retail giant looks to expand its health-related offerings.
Initially launching in six states—Arkansas, Missouri, New York, Nevada, South Carolina, and Wisconsin—Walmart plans to roll out the service in 49 states by the end of January, with North Dakota being the exception due to state regulations.
This new service enables customers to have both prescriptions and general merchandise delivered to their doorstep, adding another layer of convenience that Walmart hopes will attract more consumers. The delivery, which will cost $9.95 per order but is free for Walmart+ members, covers new prescriptions and refills. Customers can track their orders in real-time and consult with pharmacists by phone before the delivery, if necessary.
Walmart’s foray into prescription delivery comes at a time when its competitors, CVS and Walgreens, are facing significant challenges. Both companies have announced plans to close hundreds of stores in an effort to cut costs and respond to changing consumer habits. CVS is undergoing a leadership shakeup and aiming to reduce expenses by $2 billion, while Walgreens is planning to shut down 1,200 stores over the next three years.
Despite these challenges, both CVS and Walgreens already offer prescription delivery, including same-day and next-day options. However, Walmart hopes its ability to bundle medications with other household items, along with its widespread brick-and-mortar network, will set it apart in a competitive market.
Walmart’s new service also adds pressure to online rivals like Amazon, which has been expanding its pharmacy delivery services to more cities in the US Walmart’s Chief E-commerce Officer Tom Ward emphasized the demand for this service, noting that customers want a mix of convenience items—such as groceries and over-the-counter medications—delivered alongside their prescriptions.
As Walmart continues to diversify its health and wellness offerings, which already account for about 12% of its US revenue, the company is positioning itself to capture a larger share of the prescription market, currently dominated by CVS and Walgreens. However, the full impact of this new service on the broader market remains to be seen, as Walmart faces its own set of challenges, including the closure of its health clinics earlier this year due to high operating costs.
CNBC, Market Watch, and Bloomberg contributed to this report.
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