Walmart has long been hailed as one of the largest retailers in America, and over the past few years, the company has managed to see a massive improvement in its stock prices as the result of consistent innovation and the ability to adapt to a changing market. Recently, the company announced that it is making a massive push into the pharmaceutical industry, a market that has also undergone a lot of significant change since the pandemic. Let’s examine what the recent decision from the company could mean for you.
A Changing Industry
The pharmaceutical industry has seen a huge amount of changes in recent years. When COVID-19 caught us all largely unaware, a lot of companies weren’t able to adapt fast enough to the fact that practically all walk-in traffic had depreciated to near-zero levels. As a result of this, companies were forced to innovate and this lead to the increased demand for deliverable pharmaceuticals, and same-day-deliveries. In one fell swoop, the pharmaceutical industry was changed almost overnight.
Small Drugstore Hit Hard
Smaller, independent drug stores that relied solely on walk-in traffic for their business model suffered the most during the pandemic. Since then, more and more of them have been forced to close their shops due to the fact that they couldn’t recover from their losses during the lockdown. As a result, larger retail outlets and pharmacies were able to fill the gap and ride out the pandemic era tribulations, but even they suffered huge losses.
Giants Fall
While the smaller, family-owned drugstores were definitely hit hard, even some of the bigger pharmaceutical retailers utterly collapsed as a result of the losses incurred during the pandemic, and their inability to adapt fast enough to the changing market. Big retailers like RiteAid and Walgreens are either totally bankrupt and closing all stores (RiteAid) or being forced to shut a large number of stores in the coming years. Based on the trends, it seems as though the companies that offer remote pharmaceutical services are the ones who are set to succeed.
The New Field
Companies like Mark Cuban’s CostPlusDrugs and Walmart have managed to swoop in on the new demand for remote pharmaceutical deliveries of drugs. Both saw a massive surge in customers during and after the pandemic, and have managed to establish themselves as the ‘new norm’ when it comes to the pharmaceutical industry. However, Walmart has decided to make the move to help try to come out on top as number 1 in the deliverable pharmaceuticals game, and is banking on its success in the future.
Massive Expansion
Recently, Walmart stated that they plan to develop their ‘Central Fill’ network to help cater to the rising needs of their pharmacies. The centralized fulfilment centre, which spans an astounding 102,000 square feet, will be able to cater to 90% of their nationwide pharmacies. The results of this will lead Walmart pharmacies to be able to fill 100,000 prescriptions a day and expand their same-day and delivery market substantially. It seems like Walmart is poised to take the lead in the pharmaceutical game, if things go according to plan.
Highly Advanced
The new fulfilment centre also supports a really high-tech work place, relying largely on robotic automation like robotic carriers and dynamic systems that make it easier for technicians to process large volumes of orders quickly and effectively. The new fulfilment centre will pair up with Walmarts existing centre in Maryland that also has the capability to fill 100,000 prescriptions every day. This combined processing and fulfilment power is sure to give Walmart a comfortable lead in the deliverable pharmaceuticals industry in the future.
Customers Come First
One of the main ideas that Walmart claims the innovation will help to promote is a more ‘customer-centric’ approach towards how people interact with their pharmacies. They want to emphasize the amount of time that pharmacists spend speaking to and interacting with customers, as well as less time on things like red tape and bureaucracy. This way, they hope to create a more enjoyable and meaningful experience for customers, something which is incredibly important in the healthcare market.
Maximizing Benefits
Walmart also promotes the fact that senior citizens will be able to connect their Medicare Advantage plans to the pharmacy’s network and therefore get their prescriptions filled quickly and effortlessly, and maximize on their benefits, which could make life a lot easier for them. The ability to have your medication delivered also increases the amount of medication adherence that happens on a state-wide level, which could ultimately reduce hospitalization rates, saving cash for consumers, states, and insurers alike.
Even More Expansion
While the existence of two massive fulfilment centres is already enough to secure Walmart a serious grip on the pharmaceutical market, the company is aiming to open two more in both Phoenix, Arizona and Republic, Missouri. According to Walmart Pharmacy Manager Ugo Nwachukwu, the company is dedicated to making convenience the central point of its business model moving forward into the future. It seems like the age of the corner drugstore is soon to be extinct as the massive retailers spread and further their influence on the market.
AI Integration
Walmart also hosts a well-developed network of AI systems within its company, especially in the pharmaceutical delivery market. These AI models will hugely shape the way the company understands and utilizes data that companies provide regarding their prescriptions and health in general. This data could prove to be immensely beneficial in the future, as the company could profile customers and help to increase the convenience with which they utilize the service, or possibly even help them purchase additional, cheaper, or more helpful medication.
Big Gains
Since the pandemic five years ago, Walmart stock has seen a dramatic 134% increase. This clearly indicates that the company is one of the few that actually manage to benefit from the pandemic by adapting quickly and adjusting its strategy. At least the increased profits driven by innovation have also lead to advancements for the consumer, making the process of shopping for pharmaceuticals much easier. Its likely to only get better moving forward. If you liked this article, be sure to check out more on our site!