Walmart’s new threat to CVS: 30-minute prescription deliveries

By CNN Newsource

Published October 22, 2024 3:31 PM

By Maria Aguilar Prieto, CNN

(CNN) — Walmart, already partially responsible for the slow demise of America’s drug stores, is launching yet another CVS killer: 30-minute prescription delivery.

Walmart’s pitch to costumers is simple – fill your prescription, plus get some groceries delivered to your door, all in one order. Prescription delivery was the number one most-requested service by its customers, the company said in a press release.

“If you’re sick, we can deliver the necessary medicine along with everything else you need to feel better,” said Tom Ward, executive vice president and chief eCommerce officer of Walmart U.S. in a statement on Tuesday.

The service, which is already live in six states and is slated to reach 49 states by 2025, will be available to over 86% of American households, according to Walmart. The company has nearly 4,600 pharmacy locations across the United States.

To drugstore chains CVS and Walgreens, the news of Walmart’s push into prescription delivery comes after years of significant downsizing for both of the pharmacy-focused companies due to shifting consuming habits, competition and changes in the pharmacy industry.

CVS, the largest US chain, closed 244 stores between 2018 and 2020. In 2021, it announced plans to close an additional 900 stores. Earlier this month, Walgreens said it is closing approximately 1,200 locations, while CVS said it planned to cut about 2,900 corporate jobs.

The move doesn’t only bring more competition to traditional brick-and-mortar pharmacies. Amazon, too, launched its own pharmacy in 2020 to ship prescriptions to Prime members with free two-day delivery.

As their financial struggles continue, pharmacies like CVS and Walgreens are having trouble contending with competitors like Walmart and Amazon that have much stronger online presences with products like household items and snacks that are traditionally sold in the front of the store.