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Walmart announced on Tuesday it would close all 51 medical clinics and virtual medical services, saying the business model was unsustainable.
High operating costs and operational challenges necessitated this decision. Other companies like Walgreens, Amazon and CVS are facing similar issues, such as Walgreens’ plan to close 160 VillageMD clinics. Walmart originally planned to double the number of medical centers by 2024, but the move caused plans to flip.
Experts point out that a successful clinic requires a solid economic model. Investors expressed disappointment, viewing the wellness center as a differentiator to drive foot traffic. Walmart will focus on its vision centers and pharmacies to provide more clinical services.
(Source: Reuters Image source: Unsplash)
