With consumers increasingly looking for support in meeting their health and well-being goals, the retail health business model is evolving. Retailers that adopt these capabilities can lead that change, becoming invaluable partners in their customers’ health journeys.

Retailers already provide food, consumables, nutritional and health information, and in many cases, pharmacies and other services that support consumer well-being. Many are now expanding these offerings with increased nutrition services, health screenings, specialty pharmacy capabilities, community programs, and digital tools that engage consumers around their health goals. Meanwhile, legacy pharmacy businesses are experiencing significant margin erosion and losing share to digital upstarts.

AI agents that help consumers navigate health decisions are not years away — they are emerging now. Technology platforms are building integrations that allow AI assistants to execute grocery transactions based on health goals, and before long, consumers will be able to describe a condition, receive personalized recommendations, and complete a purchase without ever opening a retailer’s app.

At the same time, the healthcare dollars that flowed into retail over the past decade are at risk. Medicare Advantage profitability challenges have caused some plans to scale back benefits, and retailers that cannot demonstrate reductions in total cost of care are likely to see this funding shift elsewhere. The imperative for rigorous measurement and aligned incentives has never been clearer.

The biggest themes in retail health today

Two years of cross-sector collaboration has revealed the following key takeaways:

1. Consumer demand for healthier living is massive and accelerating

US shoppers spend an estimated $1.3 trillion annually on wellness, 83% report practicing some form of self-care, and health has become a primary driver of grocery purchasing decisions. Retailers that meet this demand with trusted guidance and convenient solutions will capture both loyalty and new revenue streams.

2. Retailers are expanding into broad health destinations beyond pharmacies

By offering nutrition counseling, preventive screenings, community programs, and digitally enabled services, retailers can deliver clinical and social supports where people live and shop — and retailers without an onsite pharmacy can still play a major role through partnerships, curated assortments, and referral pathways.

3. New partnerships are required to deliver retail health at scale

No single organization can provide the full continuum of care and support. Success depends on coordinated collaboration across retailers, payers, health systems, technology platforms, and allied professionals such as pharmacists, dietitians, and community health workers to align incentives, share data responsibly, and measure outcomes that matter.