Walmart's Net Sales Breakdown: Distribution in the US and Puerto Rico (82.2%) and International Distribution (17.8%)

Wellness companies are embracing weight-loss drugs to avoid the fate of WeightWatchers, a company that has struggled with declining membership and revenue. Walmart, the world's leading distribution group, has seen its net sales break down by activity, with distribution in the US and Puerto Rico accounting for 82.2% and international distribution at 17.8%.

Wellness companies are increasingly turning to weight-loss drugs to avoid the fate of WeightWatchers, which has faced declining membership and revenue. This shift is driven by the growing popularity and effectiveness of GLP-1 receptor agonists, which are transforming the treatment of metabolic diseases. According to a recent report by ASHP, U.S. prescription drug expenditures rose to $805.9 billion in 2024, an increase of 10.2% over the previous year, with GLP-1s being the top drug category by total spending and the fastest-growing segment in the market [1].

Walmart, the world's leading distribution group, has seen its net sales break down by activity, with distribution in the US and Puerto Rico accounting for 82.2% and international distribution at 17.8%. The company's latest financial report suggests that U.S. consumer spending is slowing, with adjusted earnings per share for fiscal year 2026 forecasted in the range of $2.50 to $2.60, below analysts' expectations of $2.76 [2]. Despite this, Walmart remains optimistic about its ability to navigate potential tariffs and maintain its market share.

The shift towards weight-loss drugs is not without challenges. Emerging risks tied to proposed federal tariffs on pharmaceutical ingredients and components sourced from China could exacerbate shortages and push patients towards more expensive brand-name alternatives. According to Eric Tichy, PharmD, MBA, lead author of the ASHP report, "GLP-1s are transforming how we treat metabolic disease, but their rise coincides with growing concerns about supply chain vulnerability" [1].

Looking ahead, the report projects overall U.S. drug spending to increase by 9–11% in 2025, with clinic expenditures rising 11–13% and hospital spending growing 2–4%. This growth is expected to be driven by continued high demand for GLP-1s, as well as the introduction of new high-cost drugs in the oncology sector and the potential impact of new vaccine products on the market [1].

Walmart's distribution strategy, which focuses heavily on the U.S. market, may be well-positioned to benefit from the growing demand for weight-loss drugs. The company's strong presence in the U.S. and its ability to manage potential tariffs could allow it to maintain its market share and continue to grow its sales. However, the company's reliance on the U.S. market also poses risks, particularly if economic conditions deteriorate or if the company is unable to adapt to changes in consumer behavior.

In conclusion, the shift towards weight-loss drugs is a significant trend in the wellness industry, driven by the growing popularity and effectiveness of GLP-1 receptor agonists. Walmart's distribution strategy, which focuses heavily on the U.S. market, may be well-positioned to benefit from this trend. However, the company's reliance on the U.S. market also poses risks, particularly if economic conditions deteriorate or if the company is unable to adapt to changes in consumer behavior.

References:
[1] https://www.prnewswire.com/news-releases/us-drug-spending-up-10-2-in-2024--with-weight-loss-drugs-remaining-top-driver-302451209.html
[2] https://www.usatoday.com/story/money/2025/02/20/walmart-guidance-earnings-consumer-spending-slowing/79294544007/