Walmart has reported a discernible shift in shopping behavior linked to the use of appetite-suppressing medications, including diabetes drug Ozempic and Wegovy. John Furner, CEO of Walmart’s expansive US operation, remarked on this trend, noting a slight reduction in overall purchases, both in terms of units and calorie intake.
The retail giant, headquartered in Bentonville, Arkansas, is actively investigating alterations in sales patterns, leveraging anonymized data from various shopper demographics. This allows for a comprehensive analysis of purchasing habits among individuals taking these medications, juxtaposed with those who are not.
Despite these early insights, Furner cautions against prematurely drawing concrete conclusions regarding the impact of appetite-suppressing drugs manufactured by Novo Nordisk A/S (NVO) (NOVO-B.CO) and similar pharmaceuticals.
A growing cohort of CEOs and investors is now engaging in discussions about the potential economic and business repercussions of the widespread use of weight-loss drugs. Just this week, the CEO of the company behind Pringles and Cheez-Its revealed that they are actively examining how these drugs might influence dietary choices.
Steve Cahillane, CEO of Kellanova, emphasized the company’s proactive stance, affirming, “Like everything that potentially impacts our business, we’ll look at it, study it and, if necessary, mitigate.”
Walmart is currently retailing GLP-1 drugs, a category encompassing Ozempic, through its pharmacies. In August, the company disclosed that these medications contributed significantly to its revenue stream. According to a recent report from Trilliant Health, sales of these medicines in the United States skyrocketed by an impressive 300% between 2020 and 2022.
Addressing analysts in an August conference call, Walmart CEO Doug McMillon reiterated the company’s anticipations, stating, “We still expect food, consumables, and health and wellness primarily due to the popularity of some GLP-1 drugs to grow as a percent of total in the back half.”
In conclusion, the ongoing examination by Walmart of shopping trends influenced by appetite-suppressing medications like Ozempic and Wegovy underscores the evolving landscape of consumer behavior in the healthcare and retail sectors.
As businesses continue to scrutinize these trends, it remains to be seen how this emerging landscape will shape both the retail and pharmaceutical sectors in the coming months.
Source: Bloomberg
