09:30 AM EDT, 04/30/2024 (MT Newswires) -- Walmart ( WMT ) announced separate moves on Tuesday to drive the direction of the world's biggest retailer away from its health-care clinic operation and deeper into the grocery segment with a new private-label food brand.

The company will close all 51 health centers in five states and also shutter the virtual care segment, it said in a statement. Its pharmacies and vision-care clinics will continue to operate, the department store chain said.

"This is a difficult decision, and like others, the challenging reimbursement environment and escalating operating costs create a lack of profitability that make the care business unsustainable for us at this time," Walmart ( WMT ) said.

Since Walmart Health started in 2019, the segment had expanded through the US. A year ago, the company said it was going to have more than 75 Walmart Health centers in the country as it tried to expand affordable health-care options for its clients. There was no date given Tuesday for when the clinics would close.

Walmart's ( WMT ) US health and wellness segment, which includes pharmacy, vision and other clinical services, saw revenue rise 8.8% last year to $46.6 billion. But grocery far eclipsed that, with a surge to $247.3 billion in 2023 revenue from $218.9 billion a year earlier.

Walmart ( WMT ) said in a separate statement Tuesday it's rolling out a new private-label brand called Bettergoods, with 300 items ranging in price from under $2 to under $15. The brand will include plant-based foods, gluten-free ingredients and specialty salt and seasonings.

Customers "want affordable, quality products to elevate their overall food experience," said Scott Morris, senior vice president of private brands, food and consumables. Select products under the new brand are already available in the retailer's locations and on Walmart.com, it said.

Price: 60.07, Change: -0.17, Percent Change: -0.28