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Walmart expands delivery to include prescriptions

Published 10/22/2024, 08:25 AM
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BENTONVILLE, Ark. - Walmart Inc. (NYSE: NYSE:WMT) announced the expansion of its delivery services to include prescription medications alongside general merchandise in a single order, a move aimed at providing customers with a more convenient and streamlined shopping experience. This service is currently available in Arkansas, Missouri, New York, Nevada, South Carolina, and Wisconsin, with plans to extend to 49 states by the end of January 2025.

The retailer's expansive store footprint, which includes nearly 4,600 locations with pharmacies, allows the company to reach over 86% of U.S. households, leveraging its existing infrastructure to fulfill customer needs through its app and website. The service is designed to benefit a wide range of customers, particularly those with busy schedules, families, seniors, and individuals managing chronic conditions who may find it challenging to make multiple trips to the store.

According to Walmart's internal customer survey, more than half of respondents indicated a preference for having their prescriptions delivered with their other online purchases, making it the most requested service among time-sensitive consumers. This new offering aligns with the company's commitment to meeting customer needs and simplifying the shopping process.

Kevin Host, senior vice president of Pharmacy at Walmart U.S., emphasized the company's unique position to impact communities through its extensive network and pharmacy expertise. The service will allow Walmart to provide more time back to its pharmacies for high-touch health services while continuing to serve customers effectively.

Walmart's delivery options will include same-day scheduled delivery and, in the near future, on-demand and express delivery, which promises prescription delivery within hours or as soon as 30 minutes. Insurance plans will apply to transactions as they would in-store, ensuring a seamless transition for customers.

Safety and security are prioritized in all Walmart deliveries, with prescriptions verified by licensed pharmacists and transported in HIPAA-compliant, tamper-evident packaging. Customers can track their orders in real-time and receive photo confirmation upon delivery.

Walmart+ members will benefit from free delivery on Pharmacy Delivery, while non-members will be subject to a standard delivery charge of $9.95. Walmart's pharmacies are an integral part of the communities they serve, with over 15,000 pharmacists providing a range of health services.

This announcement is based on a press release statement from Walmart Inc. and reflects the company's ongoing efforts to adapt its omnichannel services to the evolving needs of its customers.

In other recent news, Walmart Inc. has reached a $123 million settlement in an opioid case, pending court approval. The case involved shareholder derivative actions related to the company's handling of prescription opioids. As part of the resolution, Walmart's insurance carriers will pay the company $123 million, less any attorneys' fees and litigation expenses awarded by the court to the plaintiffs' counsel. Walmart has also agreed to maintain specific corporate governance practices for at least five years.

In the financial realm, several firms have adjusted their outlook on Walmart. TD Cowen reaffirmed its Buy rating citing Walmart's innovative technology and new revenue streams through WMT Luminate and WMT Connect. KeyBanc Capital Markets and Oppenheimer have both raised their price targets for Walmart, attributing it to the company's growth in the grocery sector and its U.S. e-commerce sales growth. BofA Securities also increased its price target for Walmart, noting the company's early holiday deals and "inflation-free" meal promotions.

However, Walmart's Mexican subsidiary, Walmex, is under scrutiny by Mexico's antitrust authority, Cofece, for allegations of anti-competitive behavior. The company is also expanding its pet care services in southern states and working towards sustainability targets with Unilever (LON:ULVR). These recent developments highlight the ongoing dynamics within Walmart's operations and strategy.

InvestingPro Insights

Walmart's expansion of its delivery services to include prescription medications alongside general merchandise aligns well with its strong market position and recent financial performance. According to InvestingPro data, Walmart boasts a substantial market capitalization of $649.57 billion, underscoring its dominant presence in the retail sector.

The company's revenue growth of 5.43% over the last twelve months as of Q2 2025 suggests that its strategies to enhance customer convenience, such as the new prescription delivery service, are contributing to its top-line expansion. This growth is particularly impressive given Walmart's already massive revenue base of $665.03 billion.

InvestingPro Tips highlight Walmart's strength as a dividend stock, noting that the company "has raised its dividend for 29 consecutive years" and "has maintained dividend payments for 52 consecutive years." This consistent dividend growth, coupled with a current dividend yield of 1.03%, may appeal to income-focused investors looking for stability in their portfolios.

The company's focus on leveraging its extensive store network for prescription deliveries is reflected in its strong market performance. InvestingPro data shows a remarkable 54.76% price total return over the past year, with the stock trading near its 52-week high at 98.77% of that peak. This performance indicates investor confidence in Walmart's strategic initiatives and market position.

It's worth noting that Walmart is trading at a relatively high P/E ratio of 41.99, which may suggest that investors are pricing in expectations for continued growth and success from initiatives like the expanded delivery services. The company's ability to generate a return on assets of 6.41% in a traditionally low-margin retail environment speaks to its operational efficiency and effective use of its extensive infrastructure.

For readers interested in a more comprehensive analysis, InvestingPro offers 15 additional tips for Walmart, providing a deeper dive into the company's financial health and market position.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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