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The Street
The Street
Jena Warburton

Walmart makes major change to popular (pricey) service

One of the more convenient parts of living in the 21st century is how readily available things now seem to be at the push of a button. 

Everything from meal deliveries, groceries, prescriptions, flights, pet supplies, sports equipment, and fashion is now accessible with just a few short maneuvers of the mouse (or mobile phone). 

Related: Bankruptcy Watch: Troubled retailer closing hundreds of stores

In fact, it's a wonder that some of us still even venture out at all to run a couple of errands. Retail giants with robust online fulfillment capabilities, which ramped up especially during and following the Covid pandemic, have made our lives so easy that it's often no longer necessary to make a grocery run or a trip to the mall. 

One such retailer is Walmart  (WMT) , which rapidly scaled up its online presence in the early 2020s as more of us preferred to procure our essentials (and non-essentials, to pass the time) without going into a physical location. 

Thanks to Walmart's prolific brick and mortar presence across the country, the retailer was able to scale up online orders quickly. With at least one location within 10 miles of 90% of the United States population, stores quickly ramped up as fulfillment locations, making last mile shipping much easier – and cheaper – than it would have been to start from zero with just a warehouse or two. 

Employees and shoppers are seen inside a Walmart store.

Jeff Greenberg/Getty Images

Walmart's physical presence is its strength

For many retailers that struggled during the pandemic, having a lot of brick and mortar stores may have been considered a liability. But this actually proved to be Walmart's strength. 

As soon as the world began to reopen, more folks began seeking deals from brands they trusted. Walmart's public campaign to roll back prices to pre-inflation levels, particularly on pricier staples like food and back to school items, became increasingly appealing and resulted in some bumper earnings. 

Plus, many people became more interested in healthy living and preventative care after Covid. So Walmart began rolling out a string of healthcare services at its locations for customers. 

Related: Disney flags startling shift in consumer behavior at theme parks

The retail superstore already operates 4,600 pharmacies inside its stores, but it has been trying to expand its high-touch interactions with potential patients with the launch of its Walmart Health centers.

At its height, Walmart operated approximately 50 Health center locations with the following care options:

  • Same-day primary care
  • Primary care by appointment
  • Dental
  • Behavioral health
  • Labs
  • X-rays
  • Community health
  • Telehealth

Walmart closes health centers, but not forever

But after waning interest and increased costs to operate, Walmart quickly sunsetted its health care division. 

"We determined there is not a sustainable business model for us to continue," Walmart said in a spring 2024 statement. 

More Walmart:

It announced on in late April that it would shutter all 51 of its health centers and close its entire health division. 

But that seemed to have lasted for only a few short months. Walmart has since changed its tune, saying it will reopen its healthcare services – to a select group of customers. 

Walmart announced it will bring back healthcare services to senior citizens only via a partnership with CenterWell, Humana's healthcare services unit. 

The services will be available in 23 Walmart locations across Florida, Georgia, Missouri and Texas, in spaces previously designated for Walmart Health. They are expected to begin operations in the first half of 2025. 

"These nearly two dozen primary care centers are specifically designed for seniors, and each location’s design, including dedicated entrances and easy parking, offers patients the access that they have come to expect at our clinics across the nation," said Sanjay Shetty, M.D., president of CenterWell. "We are eager to expand on our mission to help patients lead happier, healthier lives."

Related: Veteran fund manager picks favorite stocks for 2024

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