Walmart Inc. (WMT) is seeing customers on drugs like Ozempic putting a little less food in their carts. A Walmart executive says the retailer is seeing a "slight change" in the carts of shoppers on the diabetes and weight loss drug Ozempic, Wegovy, and other appetite suppressants, according to a report from Bloomberg.

Yahoo Finance Reporter Brooke DiPalma discusses the report and the potential impact of appetite suppressants on company margins. For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live.

Video Transcript

- We're switching gears here. Walmart-- seeing a slight pullback of shoppers, but not for economic reasons. The company's US CEO has told Bloomberg that they're seeing an impact on shopping demand from people taking the diabetes drug Ozempic, Wegovy, and other appetite suppressing medications.

The retailer saying that they're seeing the changes in anonymous shopper population data. For more on this, we've got Brooke DiPalma, Yahoo Finance reporter. So-- so, Brooke, break this down for us. What is Walmart saying and the impacts that they're seeing across some of their aisles?

BROOKE DIPALMA: Yeah. Good morning, Brad. Certainly, one to watch, especially when America's biggest retailer is weighing in on the conversation. US CEO John Furner saying in that interview that they're seeing a slight change in shopping behavior of those taking the drugs compared to the total population.

Now, that change is them seeing a slight pullback in their size of baskets. They're buying less units and ultimately, slightly less calorie options. But it is important to note here that they also said that it is too early to draw any definite conclusions about the drug. But we do know that Walmart is getting a boost from these, sort of, drugs in the company's.

Earnings report, Walmart CEO Doug McMillon weighing in, saying that they still expect food, consumables, and health and wellness primarily due to the popularity of some GLP-1 drugs to grow as a percent of total in the back half. And in the past few years, we've seen the momentum bill-- build around these weight loss drugs on a bigger scale. The US sales for medicines like these increased, 300%, between 2020 and 2022.

Now, that's pretty incredible to think that this year alone is when we've really started to hear about it. And so, we'll wait to see what that number is for 2023. But, of course, we've heard from so many celebrities getting into the conversation. And so, this will be one we'll continue to watch.

- It's going to be one we're going to continue to watch here, Brooke. And we know that Walmart isn't the only company watching and talking about Ozempic and how weight loss drugs could potentially be affecting their margins. What else are we learning about some of their competitors within the space?