Sticking with what works

WHAT IT MEANS AND WHY IT'S IMPORTANT — Walmart is convinced its sales woes can be solved by a renewed emphasis on everyday low prices and breadth of assortment. As Walmart looks to execute those strategies, the health-and-wellness category will continue to be impacted as it is a key area where favorable trends exist and it is easier to demonstrate price separation.

(THE NEWS: Walmart to refocus on U.S. unit as sales decline. For the full story, click here)

“First, our new Humana drug program enrolled more people that we expected. This provided some tailwind toward the end of the fourth quarter and will continue to do so this fiscal year. Second, the cold-and-cough season is picking up traction and we’re well prepared,” said Walmart U.S. president and CEO Bill Simon.

As for Sam’s Club, it relying on enhancements to the pharmacy component of a loyalty program known as eValues to promoted upgrades to its $100 Plus membership level. Sam's Club president and CEO, Brian Cornell, said Sam’s simplified the pharmacy component so that those who participate in the eValues program by upgrading to the $100 Plus membership level are able to receive an across the board 8% discount on branded pharmaceuticals and a 40% discount on generic product that are not part of the $4 or $10 formulary.

“Our members understand it clearly and it is paying off with upgrades,” Cornell said.

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