Walmart is offering to deliver prescriptions right to customers' doorsteps as Walgreens and CVS shutter stores in a bid to revitalize their struggling businesses.
In a press release on Tuesday, the U.S. retail giant stated that it is once again meeting customers at the "intersection of convenience and access by expanding delivery offerings" by integrating prescription medications, both new prescriptions and medication refills, and general merchandise into one streamlined single order for delivery.
The new delivery offering is live in Arkansas, Missouri, New York, Nevada, South Carolina, and Wisconsin. Walmart said its pharmacy delivery is expected to be available in 49 states by the end of January 2025, reaching tens of millions of customers.
However, the service will not be available in North Dakota because of state laws.
Walmart's latest move aims to provide low-cost convenience as drugstore chains Walgreens and CVS are shutting down numerous stores nationwide. This Pharmacy Delivery service could further challenge these drugstore chains, which are losing popularity among consumers. The shift has negatively impacted their profits and stock prices, prompting these companies to rethink their strategies.
However, it's not clear how much of the market Walmart could capture from competitors like CVS and Walgreens, both of which provide same-day, next-day, and two-day prescription deliveries, CNBC noted.
With nearly 4,600 store locations, Walmart's proximity to customers makes its "Pharmacy Delivery a choice that has more than just wide reach – but broad impact."
The company said that the new service provides a significant benefit to its customers and members, particularly families, seniors, and those with chronic conditions who are unable to make multiple trips.
Customers will be able to add prescriptions along with other items from their local Walmart in a single order, available both in-app and online. They can avail of a same-day scheduled delivery for a specific time that fits their schedule. The company is also looking to offer "on-demand and express delivery," where customers will be able to receive their prescription in a matter of a few hours, or at the soonest, within 30 minutes.
Walmart ensures that new or existing insurance plans will be applied to transactions in the same manner as picking up prescriptions in-store.
Tom Ward, chief e-commerce officer for Walmart U.S., said they added pharmacy deliveries due to shopper demand. "This is actually the No. 1 service requested by our customers," he said.
According to Walmart, the deliveries will come with a few more safety steps than its other deliveries: Medications are securely packaged in tamper-evident packaging, and customers can track their orders in real-time through the Walmart app or website. Once delivered, customers will receive a photo confirmation via the Walmart app and their email.
Walmart+ members will receive free delivery on Pharmacy Delivery. Non-Walmart+ members will pay the standard delivery charge of $9.95.
Recently, CVS Health announced its plans to lay off about 2,900 employees to cut costs. CVS CEO Karen Lynch left the company and was replaced by David Joyner. As part of its plans to close 900 of its stores, it had shut 851 locations as of August.
Meanwhile, Walgreens announced last week that it is closing approximately 1,200 stores over the next three years, with a recent earnings report revealing a net loss of $3 billion for the fourth quarter.
