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Is Ozempic causing people to buy less food? Walmart CEO says yes
Walmart observes changes in the purchasing habits of individuals using weight loss drugs like Ozempic.
In a recent interview with Bloomberg, Walmart U.S. CEO John Furner revealed that the retail giant has noticed a subtle shift in the purchasing habits of individuals using weight loss drugs such as Ozempic, as opposed to those who aren't. Furner stated, “We definitely do see a slight change compared to the total population, we do see a slight pullback in the overall basket. Just less units, slightly less calories.”
Walmart has been closely monitoring sales patterns, analyzing anonymized shopper data to compare the buying behaviour of people using appetite-suppressing medications like Ozempic to those who aren’t. The company is cautious about drawing definitive conclusions at this early stage but acknowledges the impact on shopping demand.
The increasing popularity of GLP-1 drugs, including Ozempic, has raised concerns among businesses and investors. Morgan Stanley estimates that by 2035, around 7% of the U.S. population, approximately 24 million people, could be using GLP-1 drugs. As a result, the report suggests a potential 3% decrease in the consumption of baked goods and salty snacks. Companies in the consumer packaged goods sector, such as Hershey, Mondelez, PepsiCo, General Mills, and Kellanova (Kellogg’s successor), could face challenges due to these changing dietary habits.
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Walmart, a seller of GLP-1 drugs through its pharmacies, has experienced a significant revenue boost, with U.S. sales of these medicines surging by 300% between 2020 and 2022, according to a report from Trilliant Health. Despite these changes, Walmart CEO Doug McMillon remains optimistic about certain product categories, stating, “We still expect food, consumables, and health and wellness primarily due to the popularity of some GLP-1 drugs to grow as a percent of total in the back half.”
Other industry leaders, including Kellanova CEO Steve Cahillane, are closely examining the potential impact of these drugs on dietary behaviors. Cahillane emphasized their commitment to studying this phenomenon and adapting their strategies accordingly: “Like everything that potentially impacts our business, we’ll look at it, study it and, if necessary, mitigate.”
