In 2024, major retail healthcare players Walgreens, CVS Health, and Walmart have aggressively restructured through strategic divestments, layoffs, and the closure of underperforming assets, while pivoting toward virtual care, AI-driven efficiencies, and partnerships to streamline operations and adapt to evolving market demands.
Here is a look at what the retailers did in 2024, as reported by Becker's:
Walmart
Walmart's healthcare initiatives experienced significant changes throughout 2024, marked by closures, layoffs, and strategic partnerships.
April: Walmart Health announced it would close all 51 of its health centers across five states. The retailer also revealed plans to shut down its Walmart Health Virtual Care services.
May: Following the announcement, Walmart conducted layoffs at its corporate headquarters in Phoenix, letting go of 74 employees tied to its Walmart Health Virtual Care operations.
June: By June, Walmart began leasing its now-vacant healthcare centers to other organizations. This strategic pivot allowed healthcare providers to repurpose the spaces for various medical services. For instance:
- Access Medical Clinic, which operates 61 primary and urgent care locations across eight states, took over the former Walmart Health facility in Palestine, Texas.
- St. Louis-based Mercy began using former Walmart spaces for primary care services.
- Humana repurposed locations for senior-focused medical centers.
November: In November, Walmart partnered with Altamonte Springs, Fla.-based AdventHealth to open a hybrid primary care clinic inside one of its stores. The clinic offers a range of services, including routine checkups, chronic disease management, preventive care, virtual consultations, and lab services.
CVS
CVS Health has undergone transformations in 2024, encompassing leadership changes, cost-cutting measures, and shifts in service offerings.
June: In June, CVS Health announced plans to debut a new app and incorporate AI-driven tools aimed at streamlining customer interactions, reducing wait times, and enhancing overall service quality.
August: By August, CVS Health outlined a multiyear program targeting $2 billion in cost savings. This initiative, detailed in company presentation materials, includes leveraging AI, automation, and streamlined operations to achieve its financial goals.
October:
- On Oct. 7, The Boston Globe reported that CVS Health would lay off more than 630 employees as part of its $2 billion cost-cutting initiative. A WARN notice revealed that the layoffs would commence on Dec. 8 and affect positions in technology, human resources, and analysis. Of the affected employees, 153 are based in Woonsocket, R.I., while 479 are remote workers reporting to Woonsocket leaders.
- On Oct. 11, CVS Health announced plans to discontinue Coram's infusion service offerings for antibiotics, inotropic medications, total parenteral nutrition, and other acute home infusion therapies. As part of this decision, CVS plans to close or sell 29 regional pharmacies.
- On Oct. 17, CVS Health appointed David Joyner as its new president and CEO, replacing Karen Lynch, who stepped down.
December:
- CVS Health shared plans to close its three MinuteClinic locations in Utah by Dec. 7, further signaling shifts in its healthcare delivery model.
- In December, the company announced two key leadership appointments:
- Len Shankman was named president of pharmacy and consumer wellness.
- Lucille Accetta was appointed chief pharmacy officer. Both will report to Prem Shah, group president of CVS Health, and their appointments took effect immediately.
Walgreens
Walgreens has undergone a transformative year in 2024, marked by layoffs, divestments, partnerships, and operational changes.
January: On Jan. 30, Walgreens confirmed plans to lay off 145 corporate employees, as first reported by Crain’s Chicago Business. This marked the start of a series of workforce reductions throughout the year.
February: On Feb. 28, Walgreens' VillageMD announced plans to exit the Illinois market.
March: By March 15, VillageMD completed its exit from the Florida market, closing about 40 clinics. Additionally, Walgreens reported a nearly $6 billion loss in its second fiscal quarter due to the devaluation of its investment in VillageMD. On March 2, VillageMD sold 11 Rhode Island locations to medical group management firm Arches Medical Partners.
May: On May 17, Walgreens closed distribution centers in Orlando, Fla., and Dayville, Conn., resulting in layoffs of nearly 650 workers combined. The Florida facility's closure affected 324 employees, while 322 were impacted in Connecticut.
August:
- On August 7, Walgreens filed a report with the Securities and Exchange Commission indicating it could sell off its entire stake in the primary care clinic chain VillageMD.
- Later in August, Walgreens partnered with the Biomedical Advanced Research and Development Authority (BARDA) within HHS to accelerate innovation in decentralized clinical trials.
October:
- On Oct. 1, Walgreens expanded its virtual care platform to 30 states, building on its initial launch in nine states. The platform offers chat- and video-based visits for common conditions and men's and women's health issues.
- Later in October, Walgreens announced layoffs of 256 support center roles.
December:
- Walgreens announced plans to close approximately 1,200 retail stores over the next three years, including around 500 closures in fiscal year 2025, as detailed in its fiscal year 2024 earnings report.
- On Dec. 10, The Wall Street Journal reported that Walgreens Boots Alliance was in talks with Sycamore Partners, a private equity firm, to sell itself and become a private company.