Walmart is taking on Amazon with prescription delivery. Here's what it means for CVS and Walgreens

The new delivery service is currently available in six states with plans to expand to 49 states by January

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Competition in the pharmacy sector is heating up as Walmart announces it will offer same-day prescription delivery.

The move comes at time when traditional pharmacies like CVS and Walgreens face significant challenges, including store closures and fierce competition for market share.

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Walmart’s (WMT+0.23%) new delivery service is currently available in six states —Arkansas, Missouri, New York, Nevada, South Carolina, and Wisconsin — with plans to expand to 49 states by January 2025, potentially reaching tens of millions of customers, the company said.

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Customers can bundle prescriptions with other items like groceries for a delivery fee of $9.95 or for free with a Walmart+ membership. The service allows users to order both new prescriptions and refills directly from their local Walmart or online. Multiple delivery options are available, including same-day scheduled delivery, and upcoming on-demand options that can deliver prescriptions within hours or as quickly as 30 minutes. Medications are securely packaged, Walmart said, noting that customers can track the orders in real-time and receive confirmation upon delivery.

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Kevin Host, Senior Vice President of Pharmacy at Walmart U.S., emphasized that the company’s footprint – it has 4,600 U.S. locations – and pharmacy expertise allow it to meet the diverse needs of local communities.

“Health is not a one-size-fits-all solution,” Host said. “This new offering allows us to serve customers while freeing up our pharmacies for high-touch health services.”

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Walmart’s expansion into prescription puts it into direct competition with drugstore chains like CVS and Walgreens (WBA+2.39%), which also offer delivery options but have struggled lately. It could also help Walmart compete with e-commerce giant Amazon (AMZN-0.33%), which recently announced plans to open pharmacies in 20 new cities across the U.S. in 2025, expanding its same-day delivery prescription service.

Earlier this year, Walmart reported robust quarterly earnings that highlighted it was getting a big sales boost from wealthier shoppers. Still, the company in April said it planned to close all 51 of health care clinics due to a lack of profitability.