Ozempic is coming for retail.
As more people try GLP-1s — according to a KFF (Kaiser Family Foundation) health tracking poll, one in eight Americans have tried a drug like Ozempic — retailers will be expected to tap into the market. Think displays dedicated to GLP-1 users, new product assortments and new ways of marketing.
“Retailers that have the pharmacy engagement are already seeing the power of this as a very transformative new medication and how it’s impacting the potential of traffic in stores,” said Wendy Liebmann, chief executive officer at WSL Strategic Retail.
Some specialty channels, like The Vitamin Shoppe, are tapping into the conversation early. The retailer, which recently launched these types of drugs via its telehealth platform HealthRx, is setting up displays dedicated to products that address the needs and side effects of a GLP-1 user. For example, displays will include protein powders, as muscle loss is a top concern, and probiotics, as gut and digestive issues are a common side effect.
“We’re pulling it all together in an area at the front of our store, specifically for four things: protein, multivitamin, probiotic and fiber,” said The Vitamin Shoppe president Muriel Gonzalez, noting these displays will roll out in early October. “This is a curated approach… because right now, people have to go from section to section.”
Liebmann added: “The first big push is in the vitamin space. We’re seeing lots of companies actively figuring out, do they have products that can already be on the shelf and how do they connect those to people who are looking to lose weight.”
Furthermore, companies are creating products specifically for GLP-1 users. For example, SoWell just launched a line of supplements aimed at combating side effects. Nestlé also recently released Vital Pursuit, a food line for those on weight loss drugs.
“There’s a lot of companies that are pretty well positioned from all the reformulation and innovation that’s gone towards health and wellness and functional capabilities of food and beverage over the last decade,” said Randy Burt, partner and managing director at AlixPartners, highlighting Nestlé as a key player.
In addition, there is a growing demand for products that address side effects in particular.
“Up to 70 percent of users stop the medication after a year, and one of the main contributors to stopping the medication is side effects,” SoWell founder and obesity medicine doctor Alexandra Sowa previously told WWD. “You won’t see the full benefit of this medication if you stop prematurely and without a plan.”
Experts predict this sort of dedicated space to be a growing trend across retailers going forward. While spots like The Vitamin Shoppe have a clear connection to those on weight loss drugs, experts also see an opportunity for others to tap into the conversation — think beauty retailers highlighting products that could be used to combat what has become known as “Ozempic face.”
“[There’s] opportunity for companies, particularly in the beauty space, to think about the external look of feeling better. I haven’t seen a lot of that yet, but I do think we’re going to start to see that,” Liebmann said.
As there is a growing demand to address this category, there’s also an urgent need to do something as shopping habits are changing.
“Grocery retailers indicated that they were seeing change in shopping behavior in the rest of their store. They were seeing snack sales cutting, soda sales down,” Liebmann said.
Burt also emphasized that some retailers are seeing “some pullback on calories in total basket value size,” impacting overall sales.
“The need to do other things across the store, whether it’s in health and beauty, is urgent because you don’t want to lose that kind of volume,” Liebmann said.
Although many are predicting this retail shift, some say it might be a slow process.
“It will probably have to become a slightly bigger percentage of the population before you see big sections of a grocery store or health food store” being dedicated to Ozempic-related products, Burt said. “It will offer a source of growth for those that can meet the needs… Over the next three-to-five years, I think we’re going to see it.”
However, as the drug becomes more accessible, supply chain and price wise, and as interest in the drugs rises with new indications of its benefits coming out, experts predict more movement from retail, claiming the earlier they get involved the better. Concurrently, some say that “safe for GLP-1 users” labeling could become as common as a keto logo.
“As it becomes more affordable, more people will come into this market, and then the opportunity will be even bigger,” Liebmann said. “The opportunity in terms of retailers to begin to tell that story for those people who are already looking at prescription and adding it to their health regimen, that opportunity to create a statement in the store or online is very timely.”
