Walmart executives claim their food sales are decreasing because some of their customers are taking weight loss drugs.
The impact of appetite-suppressing GLP-1 medications does not appear to be limited to the realm of health, with Walmart U.S. CEO John Furner telling Bloomberg in an interview on Wednesday that consumer food purchasing patterns of those on the drugs have changed.
Walmart’s claim stems from anonymized data on shopper populations. Since Walmart’s pharmacies sell GLP-1 drugs, the Arkansas-based company can compare the shopping habits of those taking them with customers who do not.
“We definitely do see a slight change compared to the total population, we do see a slight pullback in overall basket,” Furner said, per Bloomberg. “Just less units, slightly less calories.”
As previously covered by The Dallas Express, appetite-suppressing drugs such as Novo Nordisk’s Ozempic and Wegovy have been game-changers in the fight against obesity, an ongoing public health issue affecting people nationwide.
Data recently published by the CDC details a concerning rise in obesity rates among adults across several states in 2022. A total of 22 states — including Texas — have reached an adult obesity rate of 35% or above, increasing the risks of heart disease, type 2 diabetes, stroke, heart attack, and cancer among obese individuals in those states.
Now, more pharmaceutical companies are racing to bring their own GLP-1 drugs to market, with Eli Lilly quickly coming up on Novo Nordisk’s heels with its drugs Mounjaro, Bimagrumab, and Retatrutide.
As such, it seems whatever effects weight loss drugs might be having on consumer spending habits will continue. Nonetheless, Furner told Bloomberg that it is too early to draw any definitive conclusions from the data.
It is also important to note that while Walmart might see a contraction in food sales, it has benefited heavily from its pharmacies’ sales of GLP-1 drugs. For instance, its sales figures in August were helped by a bump in GLP-1 drug sales.
Moreover, as Walmart CFO John David Rainey explained to Bloomberg, customers taking GLP-1 drugs “tend to spend more [at Walmart] overall.”
Still, industry analysts and executives are keeping an eye on the drugs, looking to see how they might affect profits.
“Like everything that potentially impacts our business, we’ll look at it, study it, and, if necessary, mitigate,” Steve Cahillane, CEO of food manufacturer Kellanova, told Bloomberg.