Walmart Is Shutting Health Centers After Plan to Expand

The 51 locations, next to Supercenters, proved too costly to be profitable, the retailer said.Walmart, the world’s largest retailer, said Tuesday that it was shutting down its health care centers, a network that only last year it said it planned to expand.The retailer said in a blog post that its 51 health centers would close. The centers were next to Supercenter locations. The plans won’t affect the more than 4,600 pharmacies and more than 3,000 vision centers within Walmart stores.Walmart started the health-care clinic initiative in 2019 in Dallas, Ga., with centers providing primary care, labs, X-rays and electrocardiograms, counseling, and dental, optical and hearing services. Many were in smaller towns where customers might lack access to quality care, and the company had said it was focused on affordability. In 2021, Walmart started offering a virtual option when it acquired MeMD, a telehealth provider.“This is a difficult decision, and like others, the challenging reimbursement environment and escalating operating costs create a lack of profitability that make the care business unsustainable for us at this time,” the company said Tuesday.The company said it was still deciding when it would close each center. In March 2023, Walmart said it planned to double its health center locations. It said that by the end of 2024, it expected to have more than 75 Walmart Health Centers and expand to states like Missouri and Arizona.Workers within the centers will be paid for 90 days and will be eligible to transfer to other Walmart or Sam’s Club locations, the company said Tuesday.

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How Supplement Stores Are Trying to Tap Into the Ozempic Boom

GNC and the Vitamin Shoppe are redesigning displays and taking other steps to appeal to people who are taking or are interested in drugs like Ozempic and Wegovy.As diabetes and weight-loss drugs like Ozempic and Wegovy took off in the last few years, many people turned away from established diet and nutrition products.Now, two retailers that specialize in nutritional supplements — GNC and the Vitamin Shoppe — are trying new approaches to win over people who are taking those drugs or who are interested in them.GNC is dedicating a wall of supplements in its more than 2,300 stores to products that it believes will appeal to people on Ozempic, which contains the compound semaglutide, and other drugs that are known as GLP-1 medicines. The chain is also training workers to help customers assess which substances could help them manage common side effects of those prescription drugs.Michael Costello, chief executive of GNC, said his company saw a “big opening” in helping individuals taking such drugs for weight loss.“As we were looking at the trends with folks, where people are going, Ozempic and obviously Wegovy and other GLP-1s started blowing up,” Mr. Costello said in an interview. “We saw there were significant side effects for a lot of those drugs.”It’s not clear exactly how many Americans are taking Ozempic and similar drugs for weight loss, but Mr. Costello referred to a study from Goldman Sachs that estimates up to 70 million Americans will have tried the medicines by 2028.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe.

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Walmart Raises Wages for Pharmacists and Opticians

The retailer, which sees its health care business as a way to drive profits, is trying to retain workers in a competitive labor market.The NewsWalmart, the nation’s largest private employer, said on Wednesday that it was increasing the wages for its 7,700 pharmacists and opticians, as it expands its health business and seeks to retain the workers in a competitive environment.The retailer said the raise would push the average annual salary of its than more 3,700 pharmacists to more than $140,000. Walmart declined to share the current salary rate, saying it was based on location and role.It said opticians could now “expect” to make an average hourly wage of more than $22.50. According to the Bureau of Labor Statistics, the mean annual wage for a pharmacist in the United States is $129,410 and the mean hourly wage for opticians is $21.58.The company also said it was starting a program in which associates who worked in its Vision Center could receive certification and licensing as a way to move into higher-paying positions.“We’ve listened to our associates and taken their feedback about how their work environment needs to improve,” Brian Setzer, Walmart’s executive vice president of health and wellness, said on Wednesday at the retailer’s annual shareholder meeting.Why It Matters: Pay matters in a competitive labor market.This year, Walmart raised wages for workers across its business as a way to compete for talent. Inflation is affecting not only its shoppers, but also its employees. And the job market continues to be robust, giving workers more options. In January, Walmart reduced its pharmacy hours as it grappled with a tight labor market.That same month, the company said it was increasing its minimum wage for store workers to a range of $14 to $19 an hour, up from $12 to $18. Its average wage is still not as high as some competitors, like Costco.Last year, it also raised wages for pharmacy technicians working for Walmart and Sam’s Club to an average of over $20 an hour and promised more frequent raises.For years, Walmart faced pressure from unions, policymakers and activists to increase its pay for workers in its stores. Because of its scale, Walmart’s recent move to boost pay could signal to the rest of the retail industry that companies still need to provide more incentives for workers to stay competitive in the labor market.Background: Walmart sees its health business as a way to drive growth.Walmart opened its first health center in 2019. By providing health care services, the retailer is seeking to gain a deeper foothold in the communities where it operates and grab a bigger share of the billions of dollars Americans spend on medical care each year.It currently has 32 health centers in the United States, with plans to have more than 75 by the end of next year.“Strong growth” in its health and wellness category helped drive an increase in the company’s comparable sales for its most recent quarter, John David Rainey, Walmart’s chief financial officer, said this month.At the same time, there is a shortage of pharmacists across the country. After three years at the front line of helping to battle the coronavirus, a significant number of pharmacy workers burned out and left the industry. In the coming years, the industry is expected to expand more slowly than the national average for other industries, according to a 2021 job outlook report by the Bureau of Labor Statistics. The report said most of the openings would “result from the need to replace workers who transfer to different occupations or exit the labor force.”What’s Next: Expect more Walmart updates.This week, Walmart’s executives, store associates and suppliers are gathered in Bentonville, Ark., for the retailer’s annual shareholder meeting.The company is expected to explain its vision for the year ahead, giving updates about its consumer base, technological innovations and store remodels. Its health business will most likely be a topic of interest for investors and analysts.

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