By Siddharth Cavale
(Reuters) – The head of Walmart’s (NYSE:) $55 billion health and wellness division, who oversaw the company’s failed move into clinics, is leaving after less than two years in the role, it appears from an internal memo seen by Reuters.
Brian Setzer, who has been executive vice president of the division, which accounts for about 12.4% of Walmart’s U.S. sales, since February 2023, is leaving to pursue an opportunity in his hometown of Nashville, according to the memo issued Friday was sent by John Furner. CEO of Walmart’s US operations.
Setzer will be replaced by Kyle Kinnard, who currently heads Walmart’s neighborhood markets division in the United States, Furner said.
Walmart spokesman L. Hope Moore said Setzer played a key role in the health and wellness strategy.
“As we continue to provide access to quality healthcare services and products, we are pleased to have a strong succession plan in place,” Moore added.
Setzer’s departure comes six months after Walmart decided to close all 51 U.S. health clinics and shut down its virtual health care business, saying it has no path to profitability.
The decision marked a reversal of the retailer’s 2023 plan to nearly double the number of health centers in the U.S. by 2024.
Walmart is now focused on expanding its U.S. pharmacy business with 4,600 stores and 3,000 eye care centers, aiming to sell pharmaceuticals, including GLP-1 drugs, in addition to low-cost groceries. In October, the company announced it would begin delivering prescription and refill medications, along with groceries and other items, in one order within 30 minutes.
On Tuesday, the Bentonville, Arkansas-based chain raised its full-year sales and profit expectations for the third time as it sold more essentials and merchandise to a broader group of customers. This boost to its business is helping Walmart lower prices and invest in other parts of its business.
