<div>
  <p>
  </p>
  <ul>
    <li>
      <p>
        Walmart announced the closing of its health centers and virtual health divisions, Walmart Health and Walmart Health Virtual Care, stating they were not financially sustainable. Since its opening in 2019, Walmart Health operated 51 health centers across five states.
      </p>
    </li>
    <li>
      <p>
        Specific reasons for the closure include the challenging reimbursement environment and increasing operation costs, which made the business non-profitable. The closure process, including dates for shutting down each center, is yet to be determined. However, in the meantime, the currently operating centers will continue to serve customers.
      </p>
    </li>
    <li>
      <p>
        While taking the transition forward, Walmart plans to use the learnings from Walmart Health to continue to offer health and wellness services through its extant nearly 4,600 pharmacies and around 3,000 vision centers. The company is also working toward introducing more services, like the Walmart Healthcare Research Institute, in addition to other health programs.
      </p>
    </li>
    <li>
      <p>
        <b>Analyst QuickTake: </b>
        This closure marks the latest downsizing of virtual healthcare operations by prominent digital health providers in the recent past. Just last week, UnitedHealthcare announced the 
        <a href="https://sp-edge.com/updates/28844">
          closure
        </a>
         of its virtual care business, a decision that was driven by business profitability concerns. In October 2023, Walgreens also announced the planned 
        <a href="https://sp-edge.com/updates/22774">
          closure of several of its VillageMD clinics
        </a>
        , and in August 2022, Amazon announced the 
        <a href="https://sp-edge.com/updates/12594">
          closure of its Amazon Care offering
        </a>
         in favor of pivoting toward its 
        <a href="https://sp-edge.com/updates/11801">
          acquisition of One Medical
        </a>
         for a more complete offering. This string of closures could suggest that big-name healthcare providers might reconsider their entries into the retail healthcare space and reassess strategies to maintain profitability.
      </p>
    </li>
  </ul>
  <p>
  </p>
</div>


<div>
  <p>
    <a href="https://corporate.walmart.com/news/2024/04/30/walmart-health-is-closing">
      Press release
    </a>
  </p>
  <p>
    <a href="https://www.healthcarefinancenews.com/news/walmart-announces-closing-clinics-and-virtual-care">
      Healthcare Finance
    </a>
  </p>
  <p>
  </p>
</div>


Telehealth

ANALYST_QUICK_TAKE

INCUMBENTS_PRESENT

<div>
 
 <p>Walmart has recently announced the closure of its Walmart Health and Walmart Health Virtual Care divisions due to the lack of financial sustainability. Having started in 2019, Walmart Health operated 51 health centers across five states. The increasing operation costs and a challenging reimbursement environment have made the business unprofitable, leading to this decision.</p>
 
 <p>The closure's specifics, including the dates to shut down each center, have not been decided yet. Until then, the currently operational centers will continue to offer their services.</p>
  
 <p>In the meantime, Walmart will use the experiences gained from Walmart Health to continue providing health and wellness services through its almost 4,600 pharmacies and around 3,000 vision centers. The company also plans to introduce more services like the Walmart Healthcare Research Institute, among other health programs.</p>
 
</div> <p><b>Analyst QuickTake:<br>
 </b> This closure marks the latest downsizing of virtual healthcare operations by prominent digital health providers in the recent past. Just last week, UnitedHealthcare announced the <a href="https:<br>
//sp-edge.com/updates/28844"> closure </a> of its virtual care business, a decision that was driven by business profitability concerns. In October 2023, Walgreens also announced the planned <a href="https:<br>
//sp-edge.com/updates/22774"> closure of several of its VillageMD clinics </a> , and in August 2022, Amazon announced the <a href="https:<br>
//sp-edge.com/updates/12594"> closure of its Amazon Care offering </a> in favor of pivoting toward its <a href="https:<br>
//sp-edge.com/updates/11801"> acquisition of One Medical </a> for a more complete offering. This string of closures could suggest that big-name healthcare providers might reconsider their entries into the retail healthcare space and reassess strategies to maintain profitability.</p>

Walmart closes Health and Virtual Care Centers due to unprofitability

Providing a seamless consumer experience is one hope for bringing back brick and mortar retail, automated stores are being built to do just that.

Automated Stores

PROMINENT_CATEGORY

<div>
 <p>Walmart is discontinuing self-checkout lanes at its Steelyard Commons center in Cleveland, Ohio, due to customer and associate feedback, shopping trends, and business needs. However, the service will be maintained at other Ohio stores.</p>
</div> <p><b>Analyst QuickTake:<br>
 </b> The closure follows the retailer’s removal of self-checkout lanes at a <a href="https:<br>
//sp-edge.com/updates/27212"> Los Angeles </a> store and <a href="https:<br>
//www.supermarketnews.com/retail-financial/walmart-eliminates-self-checkout-three-nm-locations"> New Mexico </a> locations and follows a recent shift of focus from self-checkout offerings by retailers, including retailers such as <a href="https:<br>
//www.foxbusiness.com/lifestyle/grocery-store-chain-ditches-self-checkout-after-shopper-backlash"> Booths </a> and <a href="https:<br>
//medium.com/@christinamoonhoward/giant-retailer-decides-to-remove-self-checkouts-my-thoughts-on-this-move-85e485cf76aa#"> Dollar General </a> .&nbsp;</p>

Walmart to remove self-checkout lanes at Cleveland shopping center

Technologies bringing about a new reality

Extended Reality

<div>
 <p>Walmart has added a new feature allowing virtual hair color trial on its mobile application, currently only available on iOS devices. This feature is aimed towards enhancing the shopping experience of customers by facilitating a virtual try-on of different hair color products from brands such as Revlon, Schwarzkopf, Clairol, Got2b, Madison Reed, etc. It uses AR technology to let users see how their hair would look in different colors, helping them make an informed decision before purchasing.</p>
</div> <p><b>Analyst QuickTake:<br>
 </b> Walmart has been focused on expanding its AR try-on options. In <a href="https:<br>
//sp-edge.com/updates/26089"> February 2024 </a> , the company launched virtual try-on’s of prescription eyewear, having partnered with Perfect Corp in <a href="https:<br>
//sp-edge.com/updates/22662"> October 2023 </a> to enable customers to try lip color, blush, bronzer, eye shadow, and other makeup products. Additionally, the company acquired AR optical tech company Memomi in <a href="https:<br>
//sp-edge.com/updates/11442"> June 2022 </a> to strengthen its virtual try-on offerings.</p>

Walmart extends AR virtual try-on feature to include hair color products

<div>
 <p>Walmart has reportedly shut down self-checkout lanes at its West Hills, Los Angeles, store, however, the company has not yet disclosed the specific reasons for this action.</p>
 <p>In a recent and related move, the retailer eliminated self-checkout lanes in its New Mexico stores, as it plans to introduce a self-checkout process that involves more worker participation.&nbsp;</p>
</div> <p><b>Analyst QuickTake</b> :<br>
 The news reflects a recent trend of retailers reevaluating their self-checkout strategies. Recently, British retailer <a href="https:<br>
//www.foxbusiness.com/lifestyle/grocery-store-chain-ditches-self-checkout-after-shopper-backlash"> Booths </a> removed nearly all self-checkout stations as a response to customer feedback. Dollar General announced plans to shift away from self-checkout systems and reassign staff to traditional cashier roles.</p>

Walmart closes self-checkout lanes in Los Angeles

Automation and robotics are finally creating solutions for the complexities of doorstep deliveries.

Last-mile Delivery Automation

<div>
 <p>Alphabet's drone delivery division, Wing, has introduced a drone delivery service in North Richland Hills, Texas. The initiative will deliver Walmart's groceries, medications, and other items, making North Richland Hills the first city in Tarrant County and the fourth in North Texas to access drone deliveries.</p>
 <p>The pilot program that lasts for a year aims at serving a delivery radius of four to six miles around two Walmart stores in the region.</p>
 <p>The North Richland Hills City Council has given Wing the necessary permissions to construct landing pads for the service at Walmart locations.</p>
 
</div> <p><b>Analyst QuickTake:<br>
</b> Walmart started looking at drone-based delivery options in 2020—entering a string of partnerships with service providers such as <a href="https:<br>
//sp-edge.com/companies/696006"> DroneUp, </a> <a href="https:<br>
//sp-edge.com/companies/251574"> Flytrex, </a> and <a href="https:<br>
//sp-edge.com/companies/69024"> Zipline </a> —and is now conducting drone-based deliveries in multiple locations, including Texas and Arkansas. The company first partnered with Wing in August 2023 to offer drone-based deliveries in Dallas, Texas. It extended its partnerships with Wing and Zipline <a href="https:<br>
//sp-edge.com/updates/25358"> in January 2024 </a> to expand its coverage in Texas.</p>

Alphabet's Wing and Walmart begins drone-based deliveries in North Richland Hills, Texas

<div>
 <p>Walmart announced the availability of its Optical Virtual Try-On tool on the Walmart app for customers to virtually try and purchase prescription eyewear. The tool uses 3D data and algorithms for a realistic digital trial. This initiative comes amidst Walmart's effort to improve its vision offerings, including an expanded frame selection and updated vision centers, which follows the acquisition of the Zeekit virtual fitting room platform last year.</p>
</div> <p><b>Analyst QuickTake: </b> The move expands Walmart’s efforts in the AR space and follows the <a href="https://sp-edge.com/updates/25306"> announcement </a> of the company’s AR social commerce platform, Shop With Friends, at CES 2024. The platform offers an AR shopping tool that allows users to share virtual outfits created with friends and family and receive feedback.</p>

Walmart expands use of AR for eyewear virtual try-on

<div>
 <p>At CES 2024, Walmart unveiled its experimental AR social commerce platform, Shop With Friends, as well as updates regarding GenAI and drone technology. Shop With Friends is an AR empowered shopping tool that lets users share and receive feedback on virtual outfits, developed using Walmart's AI-guided virtual try-ontech, first introduced in September 2022.</p>
</div>

Walmart announces beta AR social commerce platform 'Shop With Friends' at CES 2024

Empowering Tomorrow's Innovations with Generative AI Infrastructure

Generative AI Infrastructure

<div>
 
 <p>Walmart and Microsoft have paired up to improve digital shopping experiences via GenAI. Walmart is implementing GenAI in its online search, using its proprietary data, technology, and large language models such as Microsoft Azure OpenAI Service. The upgrade facilitates a conversational experience, enabling customers to ask targeted queries and receive personalized product recommendations. The collaboration seeks to shift from traditional scrolling searches toward a more purposeful exploration. Walmart has also launched the "My Assistant" app, driven by GenAI, which aids in tasks like summarization, documentation, and content creation, highlighting AI's potential to boost employee productivity.</p>
 
</div>

Walmart partners with Microsoft to provide GenAI capabilities for shoppers and associates

<div>
 <p>Walmart partners with Alphabet's Wing and Zipline to extend its drone delivery services to 1.8 million additional individuals in Texas. The company now provides drone deliveries to 75% of the Dallas-Fort Worth metro area's population.</p>
</div>

Walmart partners with Wing and Zipline for expanded drone delivery in Texas

Tech solutions for achieving global anti-wastage targets

Food Waste

<div>
<ul>
<li>
<p>Denali, a full-service recycler of organics, has extended its agreement with Walmart to provide food waste recycling at its 4,700 stores in the US.</p>
</li>
<li>
<p>Through the partnership, Denali and Walmart aim to divert millions of pounds of food waste from landfills, turning it into compost, animal feed, and renewable energy through anaerobic digestion. The companies will also explore other strategies to reduce food waste and maximize recycling. Denali expects significant growth in waste avoidance in the next five years.</p>
</li>
</ul>
</div>

All Updates