Walmart’s health and wellness head departs, memo says

5:35 pm Friday, November 22nd, 2024

By Siddharth Cavale

(Reuters) – The head of Walmart’s $55-billion health and wellness division, who oversaw the company’s failed push into clinics, is leaving after less than two years in the role, an internal memo seen by Reuters showed.

Brian Setzer, who has been executive vice president since February 2023 of the division, which accounts for about 12.4% of Walmart’s U.S. sales, is departing to pursue an opportunity in his hometown of Nashville, according to the memo sent on Friday by John Furner, CEO of Walmart’s U.S. operations.

Setzer will be replaced by Kyle Kinnard, who currently leads Walmart’s neighborhood markets division in the United States, Furner added.

Walmart spokesperson L. Hope Moore said Setzer played a key role in its health and wellness strategy.

“As we continue to provide access to quality healthcare services and products, we are excited to have a strong succession plan in place,” Moore added.

Setzer’s departure comes six months after Walmart decided to close all 51 of its U.S. health clinics and cease its virtual healthcare operations, citing no path to profitability.

The decision represented a reversal from the retailer’s 2023 plan to nearly double the number of health centers across the U.S. by 2024.

Walmart is now focusing on expanding its 4,600-store U.S. pharmacy business and 3,000 vision care centers, aiming to cross-sell medicines, including GLP-1 drugs, alongside cheap groceries. In October, it announced it would start delivering prescription medicines and medication refills along with groceries and other items as a single order within 30 minutes.

On Tuesday, the Bentonville, Arkansas-based chain raised its full-year sales and profit forecasts for the third time, as it sold more essentials and merchandise to a wider cohort of customers. This boost to its business is helping Walmart lower prices and invest in other parts of its business.

(Reporting by Siddharth Cavale in New York; Editing by Rod Nickel)