Sanofi Health Care and Wellness: Walmart Department Dynamics
How one report helped define questions and drive deeper conversations with Merchants
Post-pandemic trends highlighted shifts in consumer behaviors that might be affecting performance in the health care and wellness categories. To examine these categories at Walmart, Sanofi leveraged Walmart Luminate Shopper Behavior for deeper analysis. Using a single report—Performance in Detail—they were able to home in on clear insights that could enable more meaningful conversations with their Merchant.
Detailed data & analysis
The Performance in Detail report led to a robust analysis across Sanofi’s categories. Through it they learned that higher Dollar Rings and more Walmart customers are driving growth1 in health care and wellness. One subcategory, diabetic OTC, is the most productive category per point of customer penetration. Growth here of +1 point equals a $165 million opportunity.
As more customers shop at Walmart, there is potential to improve growth in these categories. They convert fewer customers than Walmart as a whole, but there are large-dollar opportunities to capture customers in line with total Walmart trends. Functional vitamins, a subcategory in wellness, is the largest example at $78 million.
Share shifts across individual categories are aligned with total health care and wellness categories growing around 2 points in the price sensitive segment; the mid-market price segment is slightly over index vs total Walmart across all categories. Customers who are loyal to Walmart over index in health care and wellness, and dollar sales are shifting into premium and lapsing loyalty segments—this shows that Walmart is converting some shoppers to be more loyal, but losing less-loyal shoppers as consumers lapse in these categories.
Across all subcategories, excluding pediatrics & humidifiers, premium and lapsing shoppers are growing in dollar share—while valuable, potential, and uncommitted customers are all declining or flat vs YA. Laxatives show the largest increase in dollar share across premium shoppers: +0.6 points, while pediatrics & humidifiers show the largest decline in premium shoppers’ dollar share at -1.2 points. There is also an opportunity to expand across channels. Up-market consumers over index in eCommerce, creating the chance to capitalize on higher price-point shoppers.
Ready for next steps
Sanofi is now equipped with a wealth of category insights from Walmart Luminate that reveal new opportunities for their wide range of health care and wellness products. And they now have better questions that can help them engage in more meaningful conversations with their Merchant.
Insight | Opportunity |
|---|---|
Analgesics has the highest customer penetration of any individual category, followed by first aid | How can this be leveraged to drive awareness to other categories in the larger set? |
Walmart customers grew +7.9% (28 million customers) vs YA, but health care and wellness categories are not capturing their fair share of consumers | How do we drive consumers down the health care and wellness aisles? |
eCommerce customers in health care and wellness over index in up-market price segment: Wellness: 135 Index | How do we expand the footprint of alternate shopper channels to continue category growth and improve experience for consumers? |
Explore the Sanofi case study to see how they leveraged Walmart Luminate Shopper Behavior for deeper analysis.
References:
1Walmart Luminate Shopper Behavior Total Category Performance in Detail report 6/24/22-6/23/23
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