Walmart has added same day prescription delivery service.

According to Seeking Alpha, the retail giant will begin to deliver prescriptions to households in the US in as little as 30 minutes.

30?

That's right, 30 minutes.

Customers have the ability to add prescriptions and medication refills to their orders for groceries and other products and the service will be free for Walmart plus members.

Walmart aims to have prescription delivery available in 49 states by the end of January, with coverage across more than 86% of us households.

Uh, Chris, we're going to you first here.

How big of a move is same day prescription delivery from Walmart?

There's a lot of perks in that announcement.

Yeah, I mean, I think it's definitely a big move.

I think it's scarier if you're CV's Walgreens sitting there.

It's obviously quite a, quite an intimidating move.

But I don't think of it as, you know, some people have been saying this is the like critical death of pharmacy and drug.

I mean, I look at it more as a million cuts that are going to a contributing factor that's going to lead to continued decline in drug.

I mean, so today, 90% of households are within 10 miles of a Walmart pharmacy.

But they only actually, Walmart only has 5% of the market share for prescriptions, Walgreens and CV's 40 50%.

So right out of the gate, will they start to steal some market share away?

Probably, but their overall penetration in the pharmacy is relatively low.

It starts to get more interesting.

Amazons doing the same thing.

I think Walmart is targeting 90% coverage by January.

Amazon's opening new pharmacies.

I think they're trying to reach 50% of households with same day over the next year.

So you start to have more and more competitors in the space.

And I think it does beg the question of what is the future for pharmacies like Walgreens and CV's that have 8000 locations?

They're continuing to evaluate their footprints.

I think the bigger thing here for them is that Walmart doesn't really have to make money on their pharmacy, whereas they really do.

So I think it's just another cut that's going to start amping up the pressure.

And it really shows how other players who are competing for those same scripts and the same front end baskets have a lot more levers to innovate than your cvs is in your Walgreens of the world.

Yeah, absolutely.

And, and then you throw in grocery delivery in there too, which is something that Walgreens, CV's can't compete with, for sure.

Um.

All right, Chris Walton, you are so excited about this.

I know.

What are your thoughts here?

Yeah, I mean, Chris brought up some great points there.

Like, I didn't realize the underpenetration of Walmart's pharmacy business.

So that means to me, this is just all a massive growth opportunity.

Um, the other thing that I'm reminded of is the great MC Hammer song and of can't touch this because, you know, Chris mentioned it a little bit, but like, the, the Wall, the Walgreens and CV's is the world.

They can't really do this at the same scale, particularly because of the dynamics of the other items you can ship with your pharmacy orders that Walmart can.

And then I look at their biggest competitors, target particularly target can't touch this at all because of the, their CV's relationship.

They've subcontracted out their pharmacy business to CV's.

So think about the coordination that's going to be involved in that.

And CV's has a ton of other problems, namely, they just named a new CEO in the last week.

So they're not going to be focused on trying to do that and figuring out how to make that happen at a target, particularly.

And then Amazon just doesn't have the physical presence.

So I don't know.

I, the thing I love most about this is that it shows the beauty of how Walmart is also thinking about Walmart plus.

It's taking the beauty of, of what Walmart does best, which is its physical stores by way of gas discounts, scan and go activations, and now pharmacy and creating differentiation through digital by way of that subscription, which is just going to be so powerful.

And to Chris's point, with under penetration, a massive gross opportunity here potentially, too.

Zachary?

Yeah, Chris, I think it's really important what you highlight, too, about the Walmart plus membership to Holden Bale.

He was sharing with me some research at shop talk last week where he said that, you know, of the, of these retailers that they studied, the most surprising thing that he found was that so many of the retailers are just looking at what their competitors are doing and trying to do that versus what their customers are telling them that they want.

And I think this is a perfect example of Walmart doing the opposite here.

Walmart listened to what their customers said.

They said the number one thing they wanted with their Walmart plus membership was the ability to combine grocery delivery and prescription delivery.

And Walmart delivered.

It's the single most asked for service.

And them listening to their customers instead of just saying, like, what's Amazon doing?

What's target doing?

What's, you know, what are CV's and Walgreens doing?

They are uniquely positioned to give the customers what they want.

I think it's so brilliant here.

Lakshman, I'd love for you to close us out.

What do you think of this move?

How big is Walmart's same day prescription delivery?

Yeah, we know the demographic curve that's coming up, right?

We know that the baby boomers and the next wave are coming up to age now.

It's a great.

They want convenience, they want speed, they want security, they want reliability.

Who best to deliver that than Walmart?

100%.

That's great.

That's a great point too, because the demographics of who shops where at what pharmacies is also going to shift because as you get older is when you start needing medication.

So that 50% roughly, I think you said, Chris, that shop at Walgreens and CV's, that's going to change naturally too.

So really interesting point, Lakshman.

All right.

And we just interviewed Vanessa Yates, the SVP of Walmart plus.

She's got the best poker face in the world.

We interviewed her ten days ago.

We asked her, like, what's coming with Walmart plus?

She didn't give us any indication that this bombshell was on the doorstep.

I can only imagine what's in store still.

Like, that's not the end of this.

They just, they're moving at lightning speed right now.

It's remarkable.