Access to medical care is changing, with Americans being offered more locations for access to medical professionals. Some retailers may have the space, and may be willing to undertake the effort, to host a medical clinic. For others, this doesn’t make sense. Retailers need to take a hard look at the numbers and the liability before jumping into hosting a clinic.

Retail is definitely positioned well to offer solutions for *some* of healthcare’s challenges. A key driver is the change in doctor patient relationships. The concept of a lifetime primary care physician or family doctor is on the decline. With workers changing jobs and insurance plans every two to three years, they often have to switch doctors to stay in-network. Suddenly the concept of the no-wait drop-in at “CityMD,” for example, is much more appealing than finding a new doctor. Retailers can incorporate basic healthcare services into their model and gain traction. The key question will be, how does the service fit into the broader business model of the merchant? The more transactional and brand-relevant services will likely thrive. Offering flu shots and diabetes tests at a pharmacy is relevant for the brand. Offering eye exams with the intent to sell glasses (i.e. retail) fits Costco’s business model. That said, broader healthcare is unlikely to thrive in a retail environment. Retailers and healthcare professionals struggle to meet customer service expectations. Could a Nordstrom make a difference?… Read more »

I see the retail healthcare industry growing because those who have no insurance or insurance plans with high deductibles will always look to save money. The FDA is continuing to allow more OTC drugs and devices, most recently they approved OTC hearing aids. So it’s smart for retailers to invest in building up this area. Moreover, we will see more local clinics with facilities competing which will help the customer further by keeping costs down. My only concern is that we do not sacrifice quality which will be very difficult because usually with price competition quality begins to suffer.

I see it as less a competitive battle between established medicine and retail and more as the continuation of opening new opportunities to provide accessible care to patients, be the providers retailers or hospitals/clinics/medical groups.

Retail has been in the lead; there are now over 1,120 minute clinics in CVS stores and somewhere around 400 to 500 in Walgreens outlets. Supermarkets too are participating (Kroger, for example, operates well over 200 Little Clinics), and they certainly do have the resources to provide clinics, prescriptions and nutrition management. Urgent care facilities and operations like Great Expressions open up even more accessibility, they provide different services from retail-based healthcare offerings. I believe that there is plenty of room to grow for everybody.

It makes perfect sense for retailers to expand into a level of healthcare. For years, pharmacists in stores have often been the trusted go-to experts for minor ailments and medications, and now blood testing units are being set up very effectively in grocery stores for convenience. There may be a sensible limit to the healthcare available in this way, however a good move for retailers I would say.

The Minute Clinic is the perfect case study in why retailers can solve for what traditional healthcare hasn’t (or won’t). They recognized the “job to be done” for consumers who need quick diagnoses for minor health issues. Avoiding the pain of going to a doctor’s office and waiting hours for a flu shot is time well spent.

This is not just about existing retailers jumping into this space but also clinics popping up that look like retailers. I won’t bore you with my ailments but needless to say, I have to have my blood panels done every month. Currently I have to make an appointment with my doctor, go in and wait and then have my blood work done and sent out for a ridiculous amount. And you ask what’s wrong with our healthcare? Its not so much about how many payers there are as it is about the way things work and all at the expense of the patient. Wouldn’t it be nice to hop into a local, convenient “store” to get this done? And to be able to pick up items that you might need related to your condition(s)? This is a great place for retailers to start looking at new services and opportunities. For my 2 cents.

YES THEY CAN. Three areas of impact:

1. They know consumer behavior better than healthcare in general. Traditional Healthcare still talks in terms of the Patient Journey. But some are moving upstream to realize there is still a decision path to making decisions on what providers/payers to work with. Retail already gets that perspective.

2. Retailers can be more nimble and flexible in their delivery of basic healthcare services that large-scale healthcare organizations will struggle to provide. And really, should a large organization be straddled with flu shots and colds? If we can tie the patient records together so that they travel more cohesively with the customer/patients, then we will have this seamless system that allows retail to disrupt the traditional delivery methods.

3. The proximity of the physical store in your neighborhood for retail for simple health care needs, coupled with pharmacy and OTC products, in one place.

Location pervasiveness, alone is a great driver for retailers to dive into these services. This is also another way for retailers to be thought of more by consumers as services providers, rather than simply “product sellers.” Another great way to differentiate.

Grocery retailers are definitely the best positioned to increase the customer experience by extending the current customer shopping journey offering additional services within their in-store clinics and pharmacies. However, the solutions they could provide need to be designed in terms of how the customer would value such enhanced experience and not result in adding complexity to the customer experience. Other retailers like active apparel might consider adding some healthcare services that could complement the healthcare journey.