The news: The FDA sent warning letters to four major retailers that continued to sell baby formula linked to a botulism outbreak after the products were recalled in early November.

• Target, Walmart, Kroger, and Albertson’s stores still had ByHeart brand formula on shelves, per inspector audit check reports in the weeks after.
• In its letter to Target CEO Brian Cornell, the FDA noted it held a call with him on November 19 to discuss the ineffectiveness of the Target recall, noting inspectors found the tainted formula on sale at a Target store in Arkansas on November 20.
• Walmart stores in at least 21 states kept the formula on shelves from Nov. 12-26, per the FDA letter. It held a similar call with Walmart CEO Doug McMillion on November 18.
• 51 babies in 19 states have been sickened by the tainted formula.
• The agency gave the retailers 15 days to detail the steps they have taken to prevent similar issues in the future.

Why it matters: Retail chains have been working to reposition themselves as go-to destinations for health and wellness products and care.

• Walmart recently became the first retailer to sell Abbott’s over-the-counter (OTC) blood sugar monitor in store. The device is used by people without diabetes to monitor broader health.
• Walmart is investing in clinically backed wellness brands like Nutrafol and Ritual, and said in a June news release that it has backed 50 brands over the past two years with trust being “non-negotiable.”
• Target amplified its wellness commitment in January, with plans to introduce more than 2,000 products, including functional health, nutrition and gut health, and wellness tech.

Implications for retailers: As retailers move deeper into health and wellness, their daily operations need to support the image they’re trying to build. Selecting and promoting trusted health and wellness products needs to go hand-in-hand with basic safety tasks, like removing recalled products promptly. The recent recall highlights the importance of robust internal systems and consistent follow-through for retailers that want to compete in more health-focused categories.

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