Walmart Introduces Prescription Deliveries, Outpacing Drugstores CVS and Walgreens

Walmart Prescription Delivery: Key Insights

• Walmart's Prescription Delivery Service: Walmart.com is introducing a prescription delivery service, with the same terms as its standard home delivery service. Delivery costs an additional US$9.95 for online orders or is free for Walmart+ members. A pharmacist phone consultation is offered for new prescriptions.

• Outperforming CVS and Walgreens: Traditional drugstores have struggled in the U.S. in recent years. This is reflected in store closures and discontinued services. Walmart has a clear advantage as customers choose it for its convenience and accessibility.

Walmart is now offering prescription delivery to customers. The project is being launched in six U.S. states: Arkansas, Missouri, New York, Nevada, South Carolina and Wisconsin. By the end of January, the retailer plans to launch the prescription delivery service in 49 U.S. states. 

Walmart’s move puts additional pressure on competing retailers, especially drugstores that are currently struggling to turn a profit and maintain relevance, like CVS and Walgreens. Walmart customers can now order any product and have it delivered to their doorstep for an additional US$9.95, or for free if they are Walmart+ members. Prescription delivery is part of the same offer, along with a pharmacist phone consultation for new prescriptions.

Walmart.com on the Rise

The United States is Walmart's most important market. While Walmart's global eCommerce sales have fluctuated, walmart.com has consistently performed well.   

With the new service, Walmart is taking market share from traditional drugstores CVS and Walgreens, which have struggled in recent months. The solution for U.S. consumers who live in so-called “pharmacy deserts”, or areas where there is no immediate access to a pharmacy, is to order online. 

But the question is where to order online? Consumers are going to choose a provider based on experience, proximity, availability, price, and speed. The offering of each provider has a significant impact, and in the case of Walmart it is clear: On Monday (Oct 21) Walmart shares increased 54% for the year, CVS was down 26%, while Walgreens’ declined by 60%.

Sources: CNBC