Are health and wellness subscriptions the next frontier for grocers?
Hy-Vee and Amazon have recently ventured into memberships that bundle wellness services, and sources say other grocers will likely follow suit.
Last week, Hy-Vee unveiled a health and wellness subscription program that includes personalized nutrition counseling, preventative health screenings, fitness videos, virtual classes and more — taking a major step in advancing its existing health and nutrition efforts.
The news came just a few weeks after Amazon completed buying primary care organization One Medical, with which it has rolled out a healthcare membership that includes virtual care and in-app prescription requests and renewals, among other offerings.
As other retailers and grocers, like Walmart, Kroger and Heinen’s, move further into the health and wellness space, sources said it’s only a matter of time until more retailers closely link their grocery and pharmacy options with food-as-medicine, preventative care and wellness services through memberships.
Subscriptions can be an especially good match for grocers given their existing experience in the food and pharmacy, large customer reach and often loyal shoppers base, sources noted.
Retailers, and grocers especially, are facing increasing pressure with their core businesses, which is prompting them to seek out additional revenue and profit, GlobalData Retail Managing Director Neil Saunders wrote in an email.
Since the pandemic began more than three years ago, more consumers have grown concerned about their health. Six in 10 people in the U.S. have a chronic condition, while four in 10 have more than one, per the Centers for Disease Control and Prevention.
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