Weight Loss Drugs Boost Sales at Retail Pharmacies, but They May Not Help Profits Much

Retailers with pharmacy businesses like Walmart, Kroger, and Rite Aid have reported increased demand for prescription weight loss drugs, such as Novo Nordisk's Wegovy and Ozempic, which helped boost sales for the second quarter. However, analysts note that these popular treatments, known as GLP-1s, have low gross margins, making them minimally profitable for retailers. While these drugs drive sales and foot traffic, their impact on profitability is limited due to the slim profit margins associated with branded drugs.