KEY TAKEAWAYS
- Walmart is closing the 51 health centers in five states and will shutter its telehealth business.
- Walmart blamed an "unsustainable" business model and high costs for the closure.
- The big-box retailer is also launching a new grocery brand called BetterGoods with most of the goods priced under $5 each.
Walmart (WMT) said Tuesday will close health centers it opened in five states and shutter its telehealth business, as expenses around building a network of low-cost health clinics increase.
The retailer said it is closing all 51 health centers it had first launched in 2019, although th🍬e company said it will continue to provide health and wellness services in its 4,600 pharmacies and more than 3,000 Vision Centers.
Walmart said in a statement thaꦏt the business model for the clinics was “unsustainable.”෴
“This is a difficult decision, and like others, the challenging reimbursement environment and escalating operating costs cre♓ate a lack of profitability that make the care business unsustainable for us at this time,” the retail giant said.
Walmart Launches Grocery Line to Capit𓃲alize on Inflation
Separately, the big-box retailer also said Tuesday it is launching a new grocery brand called BetterGoods, in its latest push to increase its in-house product lines as the 澳洲幸运5开奖号码历史查询:disposable income squeeze created by in❀flation continues to hit consumers.
Most of the 300 products it will sell, which include pasta and chocolate, will be priced at under $5 each, the company said.
Consumers have been increasingly switching to♏ cheaper private-label goods at low-priced chains in recent years amid elevated grocery prices. Walmart has been a beneficiary of that trend by launching in-house brands.
Walmart shares were down 1.46%📖 at 1:35 p.m. Eastern Time▨.