Walmart's goal is to provide a 'comprehensive solution'.
BENTONVILLE, Ark. -- If the basic idea behind the health and wellness movement that's sweeping mass market retailing is to tap as broad a spectrum of product and service offerings as applicable and harness them to support customers' well-being, Walmart is ideally positioned to have a major impact in the field.The breadth of the discounter's mix--which encompasses everything from prescription drugs, over-the-counter health care products and nutritional supplements to full-scale grocery and general merchandise assortments--will enable it to develop a seamless health and wellness continuum, according to a Walmart spokeswoman.
In addition to pharmacy and vision care, the company offers "holistic solutions around food, exercise equipment and sporting goods, athletic apparel and shoes, and O-T-C items," she says. "During seasonally relevant times of the year, we communicate this to our customers through in-store features, product demonstrations, circular placements and on our web site. The goal is to offer a comprehensive solution to help our customers live better, healthier lives."
Competing retailers should take Walmart's aspirations in health and wellness seriously. In addition to its prowess at driving sales of consumer goods, the discounter has emerged as a dominant force in community pharmacy. A little more than three decades after opening its first prescription counter, Walmart is the nation's third-largest pharmacy operator, with ethical drug sales of some $20 billion a year, putting it behind only Walgreen Co. and CVS Caremark Corp. by that measure.
In addition, Walmart is a power in two other categories that are pillars of health and wellness: nonprescription medications and food. The company is by far the biggest seller of nonprescription medications in the United States, accounting for more than a third of sales in the $40 billion-a-year segment, as well as the leading grocer, with annual sales estimated to be in excess of $150 billion annually.
Walmart's standing in those areas and beyond make it an essential partner for suppliers pursuing a health and wellness agenda, and a destination for consumers with that orientation. Research conducted by consulting firm AlixPartners reflects Walmart's strength among shoppers seeking products that have a direct link with their well-being. The survey of 7,709 U.S. consumers found that the retailer ranks first in food (a position it has held since 2005), second in drug (Walgreens is No. 1), and highly in other segments that touch on health and wellness, including sporting goods.
"Our survey found that of the 63% of shoppers who buy their drugs at Walmart, 59% buy all of their drugs there," says Matthew Katz, leader of AlixPartners' retail practice and a managing director of the firm. "And 60% of those who prefer to buy athletic shoes at Walmart, again, buy all of their athletic shoes there. The trend is definitely not good news for all other retail chains."
The challenge for Walmart, as for other merchants with a stake in health and wellness, is to find ways to integrate their diverse offerings on a conceptual level and help customers understand how they can be brought to bear. For an individual with a specific condition, diabetes for example, the process is relatively straightforward. The level of complexity increases as the number of customers at different life stages grows and the variety of health concerns that need to be addressed multiplies.
Walmart is undaunted. Under the leadership of Dr. John Agwunobi, senior vice president and president of the health and wellness business unit. it is committed to deploying the full array of its resources to foster the health and wellness of customers and associates.
"We have only just begun and feel like we have the capability and responsibility to drive this continuum," notes the company spokeswoman.
 Printer friendly
 Cite/link
 Email
 Feedback
| |
| Title Annotation: | HEALTH AND WELLNESS; Wal-Mart Stores Inc. |
|---|---|
| Comment: | Walmart's goal is to provide a 'comprehensive solution'.(HEALTH AND WELLNESS)(Wal-Mart Stores Inc.) |
| Publication: | Chain Drug Review |
| Geographic Code: | 1USA |
| Date: | Jul 19, 2010 |
| Words: | 609 |
| Previous Article: | Transformation of Rx under way. |
| Next Article: | Partnership to help people with diabetes. |
| Topics: | |