Walmart, Costco and Amazon capitalize on GLP-1 prescriptions
Retail giants strengthen customer relationships through obesity treatment.
1GLP-1 drugs open new doors for retail giants
As US employers drop GLP-1 drugs from insurance coverage, retail giants like Walmart, Costco and Amazon are gaining market share through direct-to-consumer prescription programs. These medications are no longer just sales but the beginning of customer relationships that can last for years. According to Eric Bormel, retailers value the ecosystem around the drugs more than the medications themselves.
2Obesity treatment offers long-term customer relationships
For retailers, GLP-1 prescriptions attract customers to stores and encourage purchases of other products. Jackie Swanson notes this is the most reliable recurring customer relationship in retail. Mandatory prescription refills transform pharmacy services into loyalty program economics. In April, Walmart launched a digital platform combining GLP-1 prescriptions with nutrition coaching and fitness apps.
3Pricing strategies boost loyalty
LillyDirect's monthly prices ranging from $299 to $449 offer better rates for refills within 45 days. Novo Nordisk's NovoCare program starts at $199 for initial months before increasing to $349. Costco's partnership with Sesame offers Wegovy at $349 while driving membership card sales. Swanson says these discounts benefit both customers and chains.
4Walmart aims to grow pharmacy market share
With 4,600 pharmacies, Walmart is the 5th largest prescription provider in the US pursuing aggressive growth in the GLP-1 market. According to Drug Channels Institute, Walmart's 4.8% pharmacy market share trails CVS (14.7%) and Walgreens (14.6%). By expanding its digital platform to combine GLP-1 prescriptions with management support services, Walmart aims to become a one-stop health destination.
5Amazon expands healthcare footprint
Amazon launched a GLP-1 management program in April through One Medical and Amazon Pharmacy, offering insured patients prices as low as $25/month with same-day delivery in 3,000 cities, expanding to 4,500 by year-end. However, Amazon's closure of its Amazon Care telehealth service in 2022 highlights challenges in healthcare.
6Retailers' health investments yield mixed results
Walmart closed all 51 health clinics across six states in 2024, declaring primary care unsustainable. Kroger CEO Rodney McMullen noted GLP-1 drugs boost sales but have thin margins. Retailers continue investing in obesity care and virtual health services, though finding sustainable healthcare models remains challenging.
7Pharmacies become new retail battleground
Jackie Swanson says pharmacies are quietly becoming the membership battleground of American retail. Pharmacies filling prescriptions tend to sell groceries too. Scale economics provide significant advantages in these programs, marking a shift for pharmacies that traditionally competed on service and proximity. Walmart serving as pickup point for LillyDirect ensures customers walk through stores.
8GLP-1 drugs transform consumer behavior
Initially thought to hurt retailers by reducing impulse purchases, GLP-1 drugs created unexpected opportunities by bringing new customers and changing apparel needs. Despite low margins, retailers keep investing in the weight-loss drug boom, believing it will pay off long-term. Eric Bormel says obesity treatment is redefining consumer relationships.
9Turning point for retail industry
GLP-1 drugs enable retailers to acquire customers at lower costs while building long-term relationships. Giants like Walmart, Costco and Amazon are transforming obesity treatment from revenue stream to customer retention strategy. In a sector spending billions, these recurring relationships could shape future commerce models. The intersection of healthcare and retail has become a laboratory testing new business models.
Original article: US Top News and Analysis — Walmart, Costco ve Amazon GLP-1 ilaçlarıyla büyüyor