All 51 Walmart Health centers across the country will be shuttered alongside Walmart Health Virtual Care, the retail giant announced Tuesday, scuttling a significant planned expansion that opened three new health centers in Texas this month.
All 51 Walmart Health centers across five states—Arkansas, Florida, Georgia, Illinois and Texas—will be closed, as well as Walmart Health Virtual Care, the retail giant’s telehealth services, according to the company, though the release did not indicate when the closures will begin.”
The retail giant said it “determined there is not a sustainable business model for us to continue.”
CNBC reported that health care worker shortages have increased Walmart’s labor costs, citing unnamed sources familiar with the situation.
Walmart’s pharmacies and vision centers—which have nearly 4,600 and more than 3,000 locations nationwide, respectively—will not be impacted by the closures.
The retail giant launched Walmart Health in 2019, promising healthcare that was more affordable and accessible. It acquired telehealth provider MeMD in May 2021, which marked its entry into virtual healthcare services. Despite the rapid expansion into the sector, the retail giant reportedly struggled to recruit and retain healthcare professionals, spurred by staffing issues from the pandemic. Walmart Health also faced stiff competition from Amazon’s One Medical Centers, which has opened 15 new centers since its acquisition last year and is expected to expand into two new markets by the end of 2024. Last March, Walmart Health announced an expansion that included opening 28 new Walmart Health centers in 2024, which would have brought the total to 75 locations across the nation in seven states. Three new locations in Texas were opened earlier this month, and Forbes reported it was on track to reach its expansion goals in late March. However, Walmart changed course and planned to open 22 new locations rather than its previously announced plan of more than 30 locations this year, due to difficulties involving construction resources, pushing back its goal of 75 locations nationwide to the end of 2025, Healthcare Dive reported April 4.
In late January, Walmart announced plans to open 150 stores over the next five years while completing a remodeling project across 47 states.
Walmart Health Clinic Expansion On Track For 70 By Year’s End (Forbes)
Walmart Is Opening 150 New Stores—With First Two Set To Open In Spring (Forbes)
Walmart To Close Health Clinics In Latest Blow To Retail Healthcare (Forbes)
A Year After Amazon Purchase, One Medical Adds Clinics And New Markets (Forbes)
Walmart decelerates health center expansion plans (Healthcare Dive)
